Investors have piled into global developed market sovereign bonds as fears of Deutsche Bank collapse ripple through global markets. Interestingly, despite rising default risk concerns in Germany CDS, Bunds have been aggressively bid with negative yields now out to 15 years (and Finland NIRP to 10 years).
As Deutsche Bank risk explodes to record highs, Germany's sovereign risk has been rising…
But that rising risk has done nothing to hold back buyers of Bunds as the "global growth is awesome, bond curves are steepening" narrative is destroyed…
Driving the entire Bund curve below zero out to 15 years…
And Finland now NIRP to 10 years…
Charts: Bloomberg
via http://ift.tt/2czr9UC Tyler Durden