European government bond prices surged to highs after weak manufacturing data reinforced hopes that the European Central Bank will expand its asset-purchase program to include government debt early this year.
The yield on the 10-year German bund sank below 0.5% on Friday, while the yield on the country’s five-year debt slipped into negative territory for the first time ever. Yields on Spanish, Italian and Irish 10-year bonds fell to euro-era lows. Yields fall when bond prices rise.
Josie Cox & Tommy Stubbington | The Wall Street Journal