Draghi Says Volatility Here to Stay as Global Bond Rout Deepens

With an insouciant turn of phrase, Mario Draghi whipped up a frenzy of selling in government bonds that left German securities with their worst two-day slump in the history of the euro era.

Benchmark Treasury 10-year note yields had the biggest two-day increase in four months after the European Central Bank President said markets must get used to periods of higher volatility. Government bonds in the euro region extended a drop from Tuesday, when a report showed euro-area inflation rose more than economists forecast. Traders in New York canceled meetings Wednesday as the bond rout intensified.