Eurozone bond yields hit record low on hopes of further stimulus by ECB

The Eurozone bond yields hit record low levels amid expectations for further monetary stimulus to offset the negative impact of last week's Brexit vote on the euro zone economy.

The benchmark German 10-year bonds yield, which moves inversely to its price fell 1 basis point to -0.129 percent, French 10-year bund yield dipped 2-1/2 basis points to 0.214 percent (record low levels), Irish 10-year bonds yield moved down 4 basis points to 0.618 percent (record low levels), Italian equivalents inched lower 1-1/2 basis points to 1.311 percent, Netherlands 10-year bonds yield tumbled 0 basis points to 0.097 percent and the Portuguese 10-year bonds yield dwindled 2-1/2 basis points to 3.132 percent by 11:25 GMT.

According to Reuters, the European Central Bank's bond-buying scheme and expectations for further monetary stimulus have buffered eurozone bond markets following the British vote to leave the European Union.

Spanish government bond yields, down almost 40 basis points so far this week, tumbled to their lowest levels in more than a year and Portuguese yields slid 11 basis points to a one-month low. Yields on Germany's top-rated bonds were a tad higher but within range of last week's record lows as the uncertainty triggered by British voters' decision to leave the European Union kept safe-haven debt in demand.

The ECB President Draghi said late Tuesday that Eurozone growth could be 0.5 percent lower over the next 3 years due to Brexit, as a UK recession spills over to the continent's economy.

He also added that the ECB would do everything necessary to ensure price stability and has stepped up co-operation with central banks on foreign exchange rates. Concerned by countries trying to correct what they view as misaligned exchange rates and leaders need to address bank vulnerabilities, he added.

Meanwhile, the pan-European STOXX 600 index was up 2.16 percent and the euro-area blue-chip gauge, the STOXX 50 jumped 2.18 percent. The DAX trading 1.36 percent higher and the CAC-40 rose 2.11 percent by 11:30 GMT.