The Greatest Depression? German Yields Now Negative Through 2017

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