Saturday, January 3, 2015

German 10-Year Bond Record Low Yield 0.493%

The German bund drops to 0.493% on Friday and sits at 0.50% currently. The 2-year yield had turned negative a few months ago and the 5-year yield turned negative on Friday for the first time in history. The spread between the US 10-year Treasury yield and the German 10-year yield is at the widest level in 15 years. German yields are; 2-year -0.12%, 5-year -0.01%, 10-year 0.50%, 30-year 1.32%. The global central bankers have created wild market distortions since they have destroyed price discovery across all asset classes over the last few years.

The negative rates indicate that investors are flocking to Germany to store their money and they are willing to pay for the privilege of keeping their money safe. What has the Fed, BOJ, BOE, BOJ, PBOC and other global central bankers done to the world's financial markets? Perhaps we find out this year. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Chart is courtesy of Trading Economics and annotated by Keystone.

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