Bond yields fall on report ECB unlikely to ditch bond-buying pledge next week

LONDON: Borrowing costs across the euro area fell on Tuesday after a source-based report that the European Central Bank is unlikely to ditch a pledge to keep buying bonds at next week's meeting.

Germany's 10-year government bond yield, the benchmark for the region, fell to day's low of 0.49 percent and was down 4 basis points on the day.

Italian and Spanish bond yields dropped 6-7 basis points, extending earlier falls .

ECB rate setters also need more time to assess the outlook for the economy and the euro, three sources close to the matter told Reuters.