Investors pile in to eurozone debt ahead of ECB easing

Inflows into European peripheral debt have soared as investors prepare for a widely expected announcement of quantitative easing by the European Central Bank (ECB).

The bank is expected to announced a bond purchasing programme in its meeting on 22 January, with most market participants expecting it to amount to €500bn. The prospect of QE and continuing deflation have made eurozone peripheral debt particularly attractive, and investors have piled into Spanish government bonds ahead of the ECB meeting. On Tuesday, Spain made one of its largest ever bond sales worth as much as €23bn, with investors from across the globe pouring in money. Yields on 10-year Spanish debt fell to 1.5% by Tuesday, to less than half the 4% yields seen last year, as inc...