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German 10Y Bond Yield Plunges To 10bps, Negative To 8 Years

Tyler Durden's picture




 

German yields cratered-er today (as DAX flash-crashed into the close). 10Y yields are now at 10.5bps - record lows - and the entire German yield curve is now at negative rates to 8 year maturity. 3-Month German bills hit -42bps!! Must all be a signal of the economic success of Q€ right?

 

German bond yield compression is accelerating...

 

As the curve collapses...

 

Charts: Bloomberg

 

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Wed, 04/15/2015 - 12:22 | 5995036 Haus-Targaryen
Haus-Targaryen's picture

Sticks fingers in ears 

***THIS IS NOT A BUBBLE**** LALALALALALALALALALALAL 

Wed, 04/15/2015 - 12:32 | 5995079 ZH Snob
ZH Snob's picture

Am I crazy or is all this negative yield stuff from another universe?  How does one convince another to pay for the privilege of financing it?

Wed, 04/15/2015 - 12:35 | 5995098 LawsofPhysics
LawsofPhysics's picture

Personally, I would be happy to have the bank pay me to finance my next operation...

Wed, 04/15/2015 - 12:40 | 5995123 kaiserhoff
kaiserhoff's picture

Hmmmm.

That's going to leave a mark,

  or recreate one;)

Wed, 04/15/2015 - 12:41 | 5995131 Buckaroo Banzai
Buckaroo Banzai's picture

You're looking at it the wrong way. Think like a rich person: you can't put the money in the bank, because the banks are insolvent. You can't turn your digital money into physical cash and put that in a safe deposit box (or even in your mattress) because the bank won't give you physical cash. You have already put a LOT of your money into real estate and the stock market, but you can't put ALL of it there. So you pay the German government a tiny, tiny little slice to keep some of your money safe for a few years.

When you think about it, it makes perfect sense. Heck, I could even imagine negative yields hitting a few percent a year, using this logic.

Wed, 04/15/2015 - 12:46 | 5995163 LawsofPhysics
LawsofPhysics's picture

Please, banks are not "banks" anymore.  they are now casinos or useless fucking middlemen in the movement of money.  The fucking skim is too high.

Personally, I was thinking more along the lines of another option, becoming a real bank.

Wed, 04/15/2015 - 12:52 | 5995200 Bay of Pigs
Bay of Pigs's picture

What do you mean you can't have cash? Hogwash. Go buy gold and silver too, and other currencies.

This bullshit makes no sense. It's incredibly dumb when you are losing money to inflation and NIRP at the same time.

Wed, 04/15/2015 - 13:20 | 5995324 LawsofPhysics
LawsofPhysics's picture

^^^this too.  All investment has risk, but remember, when fraud is the status quo, possession is the law.  Be sure to have the right mechanisms in place in order to maintain possession  as well.

Wed, 04/15/2015 - 14:20 | 5995684 Buckaroo Banzai
Buckaroo Banzai's picture

Try going to your local bank branch and cashing out your $50,000 checking account and see what happens.

Now imagine what happens when that is a $500,000 account.

Wed, 04/15/2015 - 12:26 | 5995041 LawsofPhysics
LawsofPhysics's picture

Wow, America keeps whistling past the graveyard by sacrificing allies, one, (Japan) by one (Germany)...   ...how many allies do we have?  this could take a while.

 

Wed, 04/15/2015 - 12:26 | 5995045 Haus-Targaryen
Haus-Targaryen's picture

The US hasn'T thrown Germany under the bus completely.  

Germany's biggest problem is of its own doing -

1) People don't have kids.
2) The government here is invested in the "All Europeans are one people" nonsense.  

Wed, 04/15/2015 - 12:28 | 5995059 KnuckleDragger-X
KnuckleDragger-X's picture

Obozo and Merkel have a thing going on, just as long as the wookie doesn't find out they can keep it on the down low.....

Wed, 04/15/2015 - 12:28 | 5995061 LawsofPhysics
LawsofPhysics's picture

Actually, they do have kids, but usually just one or two.  That's sustainable, and these kids are intelligent and educated, I have no problem with that.

Speaking of problems that are of one's "own doing"...

talk to a fucking SNAP baby in 'merica lately?

Wed, 04/15/2015 - 12:29 | 5995066 ebworthen
ebworthen's picture

Germany building 100 Leopard tanks to play with U.S. M1-A1's!

On the modern battlefield they will be like the horse cavalry in WWI, but someone is making money.

Germany building tanks in quantity again should put their bonds at 10%-15%.

Wed, 04/15/2015 - 12:34 | 5995091 LawsofPhysics
LawsofPhysics's picture

Broken windows economy?  How did that work out for them last time?

Are these tanks electric or should I go long oil and deisel?

Wed, 04/15/2015 - 12:34 | 5995092 Kirk2NCC1701
Kirk2NCC1701's picture

Yup, the US will keep throwing other currencies under the bus, until it's own Yields are in the Avalanche Zone.

If foreign currencies want to avoid being sacrificed, they'd better ramp up their decoupling from the Petrodollar ASAP, and do the Reset on their timeline, not the Fed's. 

Wed, 04/15/2015 - 12:38 | 5995113 LawsofPhysics
LawsofPhysics's picture

"they'd better ramp up their decoupling from the Petrodollar ASAP, and do the Reset on their timeline, not the Fed's. "  --  bingo.  Pick the path of your own suffering or suffer at the hands of the Fed and the people/owners behind the Fed...

tick tock motherfuckers...

Wed, 04/15/2015 - 12:26 | 5995044 KnuckleDragger-X
KnuckleDragger-X's picture

I need to buy a buttload of them since I just LOVE losing money on rumors that 'someday' I'll make money......

Wed, 04/15/2015 - 12:26 | 5995049 Bunga Bunga
Bunga Bunga's picture

Yield curve looks healthy ... just kidding.

Wed, 04/15/2015 - 12:27 | 5995052 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Who in their fucking right mind would buy these??

Wed, 04/15/2015 - 12:32 | 5995073 ebworthen
ebworthen's picture

Someone who doesn't want to lose 60% in equities next crash.

Crazy stuff, eh?  Either push people to chase yield (and risk) in bubbleicious equities, or pay -% for "insurance" buying NIRP bonds.  Insanity.

Wed, 04/15/2015 - 13:11 | 5995213 LawsofPhysics
LawsofPhysics's picture

all the while the underlying fiat currencies are dying...

Look folks, the oilgarchs have already stolen all the real assets (their names are on the titles), everybody gets to suffer now.  It's simply a matter of picking the type of suffering you want to experience of having the fucking oligarchs behind central banking pick it for you.

Wed, 04/15/2015 - 13:23 | 5995334 ThirdWorldDude
ThirdWorldDude's picture

Not yet, LoP, the 'best' part is yet to come as insanity gradually ramps up.

I beleive negative mortgage rates everywhere will be their last card, making millions of fools and their dog loading up on debt, happy that the bank is going to pay them for buying a house. Then they raise interest rates and pull the plug on this motherfucker. That's when the real party begins...

Wed, 04/15/2015 - 14:09 | 5995624 LawsofPhysics
LawsofPhysics's picture

What no "fixed rate negative rate mortgages?"  Well, that sucks...

Wed, 04/15/2015 - 12:35 | 5995096 Downtoolong
Downtoolong's picture

The people who know there is Sum Ting Wong with those 24% yeilds on Greek bonds, and just about every other alternative investment, which is just about everyone now.

 

Wed, 04/15/2015 - 12:38 | 5995115 kaiserhoff
kaiserhoff's picture

Those betting on the demise of the Euro.

Wed, 04/15/2015 - 13:28 | 5995358 markar
markar's picture

Speculators who expect yields to go even lower, thanks to the Draghi hoovering up everything he can get his grubby little paws on.

Wed, 04/15/2015 - 12:29 | 5995067 anachronism
anachronism's picture

It couldn't be more obvious that the one-percenters have too much money!

Wed, 04/15/2015 - 12:32 | 5995074 Callz d Ballz
Callz d Ballz's picture

does the German yield curve count as a green shoot?

edit:  I mean it is green and going upwards and all

Wed, 04/15/2015 - 12:33 | 5995083 Downtoolong
Downtoolong's picture

the entire German yield curve is now at negative rates to 8 year maturity.

Is that before or after taxes, fees, inflation, and.........who am I kidding, WTF difference does it make anymore.

 

Wed, 04/15/2015 - 12:34 | 5995088 Weaponized Innocense
Weaponized Innocense's picture

until it costs one all their assets to have a checking account no one will feel secure.

Wed, 04/15/2015 - 12:42 | 5995101 Dr. Engali
Dr. Engali's picture

All completely normal. Nothing to see here. Move along, move along.

Wed, 04/15/2015 - 12:37 | 5995106 katchum
katchum's picture

Looks like a 90% move in the last 10% of the time, which is a ......

Wed, 04/15/2015 - 12:37 | 5995108 Downtoolong
Downtoolong's picture

Please Mario, stop helping me, it hurts too much.

 

 

Wed, 04/15/2015 - 12:38 | 5995112 Bay of Pigs
Bay of Pigs's picture

Deutschland has gone Full Retard.

Wed, 04/15/2015 - 12:44 | 5995143 Buckaroo Banzai
Buckaroo Banzai's picture

Nah. I'm betting it can go Full-er Retard.

Wed, 04/15/2015 - 12:41 | 5995117 nakki
nakki's picture

Negative yeilds!!! So I'll give you a €100,000 and you give me €99,900 back, in 3 months, which might be worth less because of currency debasement and or real inflation. What else can you say? If we haven't jumped the shark yet we're awfully close.

Wed, 04/15/2015 - 12:57 | 5995121 cowdiddly
cowdiddly's picture

Pretty soon even your paychecks future value will be discounted back to PV.

Sorry bud, we know you make 20/hr hour but those hours were worked last week so we only owe you 19.48/hr since you get paid by bank check.

But hey, look at the bright side, next year you are due for a .42 COLA raise! Oh, and did I mention our New Healthcare plan?

Wed, 04/15/2015 - 13:11 | 5995293 kowalli
kowalli's picture

so true

Wed, 04/15/2015 - 13:10 | 5995285 juggalo1
juggalo1's picture

How can Germans still think "austerity" is a good idea, when the market is literally paying them to spend money? Where is the fiscal loosening?  They are still at less than 1% deficit.  What did they expect to happen?

Wed, 04/15/2015 - 13:10 | 5995288 rwe2late
rwe2late's picture

 Who's buying these NIRP bonds?

Is it billionaires?

Or is it pension fund administrators, private and government?

Another way to "soak the poor".

Wed, 04/15/2015 - 13:12 | 5995296 kowalli
kowalli's picture

ECB

Wed, 04/15/2015 - 13:28 | 5995357 Hohum
Hohum's picture

No surprise in a global system that requires debt to expand much faster than output.  How much new global debt in the next five years (barring collapse)?

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