File - From France to Portugal, five-year notes led the way as yields across the region plunged.
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For investors in the eurozone's $1 trillion government bond market, the takeaway from Mario Draghi's extraordinary stimulus plan is that interest rates are going to stay lower for much longer.The bond market's reaction shows that the ECB's cocktail of stimulus measures is its most enduring yet, surpassing 1 trillion euros ($1.4 trillion) of three-year loans when Draghi took office in 2011, and his pledge last year to hold down rates for an extended period.Italy's so-called butterfly spread, which measures five-year yields relative to two- and 10-year rates, was at minus 55 basis points Friday, from minus 35 basis points the day before last week's ECB meeting, reflecting increased demand for the 2019 debt.Spain's narrowed to minus 73 basis points Monday, from minus 48 basis points on June 4, and Portugal's narrowed to minus 16 basis points from positive 42 basis points.The yield on Greek five-year bonds, which were issued at 4.95 percent in April, plunged to as low as 3.83 percent Tuesday, and was at 4.09 percent Friday.
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