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5Y German Bond Yield Goes Negative For First Time Ever
How do you say Japanization in German? 5Y German bonds just traded at -0.1bp yield (below Japan's 3bp 5Y yield)...
US Treasuries are cheap...
Charts: Bloomberg
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I wish there was a way to visualize only "retail" demand.
Es ist voll verzögern!
Negative government bonds.. kind of like the vault on the Titanic.. with a storage fee.
Oh, what was that bump a moment ago?
Nice.
Remember, the ECB Reserve Requirement is now just 1%, so the ship better darn well be unsinkable, because there are no lifeboats for 99 out of 100 passengers.
Thank you for sparing us your excesses (this time anyway).
This time you did not post a photograph of you mercilessly blasting pumpkins with a shotgun, and teaching your kid how to blast fruit in a manly manner.
You did not post the latest home-cooked meal that is giving you those aromatic, perfumed farts you gracefully spread around Texas.
You are not peddling your wife's bored-rich-housewives' five day slumber party where for 50,000 dollars they get to see a goat slaughtered, milk a cow, and actually fire a pistol.
You did not post a picture of a fetus and get on the bully pulpit, judging those heathens, and proclaiming that your god is better than those of (whomever).
And (gasp!) you are not stroking your own colossal ego.
You are too kind.
+1
Here, I'll lend you money, and you charge me interest. Sounds sustainable.
This means the cartel will have to pound gold.
Criminals hate competition.
Japanisierung.
Die Japanisierung, Die!
Sie haben natürlich Recht.
congratulations to the syndicate for creating an inescapable global liquidity trap
Why should I lend money to anyone at negative interest when I can hold metals at zero interest?
because bonds only seem to go up in value whereas metals.....
Here, I'll pay you to take my money and spend it any way you wish. I didn't want it anyway.
From what I recall of the regretted Sprockets, the Germans may lean a little maso, so you may be onto something.
That’s going to force Germany to allow QE because nobody in their right mind would buy those earning nothing and risking a big loss if rates would ever rise.
DRAGHI DID IT!
It just means more of Volk will be buying precious metals. they're not stupid.
Draghi made me buy gold.
They have been Draghischnitzled...
We Draghi'd some folks..
US Treasuries are cheap...
Now THAT'S an understatement. US 10yr is yielding 2.15% while the German 10yr is yielding 0.51%.
Come on people, this is FREE money........a total freaking no-brainer. How the hell will these two yields NOT converge!?
it's an even better buy than that from an eu perspective with the euro in the toilet us dollars AND t bonds are cheaper. the reason they don't converge is because the eu money manager maggots take their marching orders from the squid.
fuck the eu
exactly
People on ZH don't seem to understand the way bonds work. Interest rates rising doesn't mean you lose money. The maturity date on the bond is when the issuer of the bond buys the bond back from you at face value. Lending money to Germany has basically zero risk in nominal terms because you know Germany will be able to buy the bond back from you in 5 years. Rising interest rates would make the bond holder's balance sheet show large "non-cash" losses, but the losses would be reversed in the fifth year when the bonds mature.
mark to market is soooo 2008
Take your money out of the banks.
Keep stacking.
Their essentually seizing your money.
The dollar looks cheap.
At seventeen percent hell maybe even the ruble is worth something...
i got some ruble calls to go
If Germany tanks it's game over for the EU... especially considering what's happening with the PIGS...
Farfignugun*
Better them than us, Turncoat Germans.
but but .. we need the money to save the pigs..
And I don't know any Japanese
wait what was that word ??? Harakiri or so?
Gute Nacht
UST yields won't suffer negative yields... quite the opposite, in fact...
http://www.globaldeflationnews.com/10-year-u-s-treasury-index-yieldellio...
Buying high does = lower rates; but, if the intention is to flip instead of hold, then this is strategically sensible.
IF the ECB is going to QE the Cartel Banks will damned well know in advance.
IF the ECB is gonna buy then the price won't matter: it will be all about flow to the Dealers/Desks.
Draghi is certainly gonna tip GS to the front run the free money for flipping these bonds to the ECB at an even higher price if that is what is gonna happen...
Actually it doesn't need to be the ECB: any CB that offers to QE is gonna have the same effect.
Draghi will know whether he is going to monetize directly or get the reach around from another CB.
The German monetary policy hawks would probably make less noise if a Foreign CB did the deed and not make it look as if Germany is weakening it's stance or losing it's grip on ECB policy...
Two words: Catestrophically Fucked
[kat-uh-strof-ik]