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. 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 – is dragging Treasury yields lower (10Y 2.36%) but leaves the spread to Bunds at record highs.
Bund tests 90bps…
as the entire German yield curve is now negative out to 3 years…
Massively divergent from stocks…
and US Treasuries follow suit…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1vQP4Dm Tyler Durden