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LONDON: Government bond yields in much of the euro zone fell to fresh record lows on Wednesday, after European Union leaders agreed to name France's Christine Lagarde as the new head of the European Central Bank.

Analysts expect Lagarde to continue current ECB chief Mario Draghi's dovish policy stance. If approved by the European parliament, Lagarde would succeed Draghi when his term expires at the end of October.

Ten-year bond yields across the bloc fell 1-3 basis points in early trade. Germany's 10-year bond yield hit a new record low of minus 0.39%, while French 10-year bond yields hit a new low of minus 0.079%.

Copyright Reuters, 2019

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