Sunday Spectacle CXCVIII

European Central Bankers Run Amok?

I was in the deflation camp for a long time but even then, I never imagined yields would be negative. Amazing that even near-junk (BBB-rated) corporate bonds have negative yields! The data below is for Europe but similar situations are present in a few other regions (such as Japan).


(source: Bank of America Merrill Lynch, via "These Are the Charts That Scare Wall Street," Bloomberg.com, Oct 27 2016)

(source: Bank of America Merrill Lynch, via "Bank of America: Here's One Way the ECB's Bond Buying Could Come to an End," Bloomberg.com, Sep 8 2016)

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