The yield on Irish government bonds fell to a record low of 1.477 per cent this morning, the lowest level since Bloomberg started collecting the data in 1991.

Meanwhile, gains in Spanish government bonds pushed the yield below 2 per cent for the first time, amid speculation the European Central Bank will buy sovereign debt to stimulate the flagging euro-area economy.

Ten-year yields from France to Italy dropped to records as Goldman Sachs . said it sees the ECB expanding its asset-purchase program in the first half of next year.

The average rate on euro-region government debt dropped below 1 per cent on November 21st, the lowest since at least 1994, according to Bank of America Merrill Lynch indexes. China's central bank cut interest rates for the first time since 2012 at the end of last week. Spain's 10-year yield fell three basis points, or 0.03 percentage point, to 1.98 per cent as of 7:41 a.m. London time and touched 1.975 per cent, the least since Bloomberg began collecting the data in 1993.

Spanish securities earned 14 per cent this year through November 21st, Bloomberg World Bond Indexes show. Germany’s returned 8.4 per cent and Italy’s 13 per cent.

Bloomberg