Another night, another sell-side bank suggests European QE must be getting closer and, along with more un-de-escalation in Russia-Ukraine, the bid for German bonds continues to surge as Europe's greater depression appears increasingly priced into bonds [3]. Yields on all German bonds out to 3 years are now negative and 10Y Bunds have collapsed to 90.5bps - record lows. This in turn - as we explained here [4]- is dragging Treasury yields lower (10Y 2.36%) but leaves the spread to Bunds at record highs.
Bund tests 90bps...
[5]
as the entire German yield curve is now negative out to 3 years...
[6]
Massively divergent from stocks...
[7]
and US Treasuries follow suit...
[8]
Charts: Bloomberg
