Perhaps one of the most important questions investors need to answer today is whether we’ve seen the low in the long bonds yields or whether the trend lower is firmly intact....
Yesterday, we noted the continued decline in Japanese government bond yields (here)....
In what may be the most underreported financial event of the year, Japanese government bond yields just keep falling, and falling and falling. As unbelievable as it sounds, yields have fallen by 20bps, or 27.4%, since the beginning of the year to just 52bps currently....
The difference in yield on 10-year U.S. treasuries (grey line) compared to German bunds (blue line) has surpassed recent extremes of 2005/2006 and now exceeds more than 130 bps– a level not seen since 1999, the year the euro was born....
As central bank policies in the U.S. and Europe appear to be headed in very different directions, bond markets have taken note. Not since June 2006 has the spread between 10-year government bonds in the U.S. and Germany been so extreme. While yields have fallen...
A quick review of yields relative to Germany in the last few years… Spain Italy Greece Portugal France...
Most investors are familiar with the surge in bond yields in Europe’s ’peripheral’ countries....
Contrary to the consensus for a 1.5% y/y gain in December, European retail sales fell (-1.0% y/y) and November’s gain was revised to a more modest 1.3%– the only year-over-year rise since April 2011. Unsurprisingly, yields in Germany fell back to levels previously seen in...
This morning’s release of Germany’s final data confirmed previous estimates for sluggish growth in consumer prices: With the decline in inflation, investors seem to be gravitating more towards government bonds....
