Periphery yields duck as Draghi bazookas but have they hit floor?

Draghi June 5
By Craig McGlashan
05 Jun 2014

Eurozone periphery sovereigns were some of the biggest winners on Thursday as their yields tumbled after European Central Bank president Mario Draghi more than met market participants’ expectations with a series of dovish measures — but not all investors are convinced that the periphery rally still has legs for all its constituent countries.

Meanwhile, that same periphery rally helped assuage fears that a negative deposit rate — one of the ECB’s measures on Thursday — would damage money market fund returns.

On top of the deposit rate cut, the ECB trimmed its refinancing ...

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