Posts Tagged ‘negative yields’

Notes From Underground: Draghi and Trump Are Putting Powell In a Difficult Position

June 18, 2019

On Tuesday asset classes around the world got a sharp boost when ECB President Draghi delivered the ultimate dovish speech from the annual conclave in Sintra, Portugal. The ECB has set up this annual meeting in an effort to mirror the Kansas City Fed gathering in Jackson Hole, Wyoming. What did Draghi discuss? The failure of Euorpean inflation to reach the self-imposed target of 2% set by the central bank.

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Notes From Underground: Three Negatives Can’t Make A Positive

July 9, 2012
Today in Europe the short-term BILL RATES in Germany, Netherlands and France all had NEGATIVE YIELDS. Think about the meaning of this: The hunger for quality sovereign paper has even driven the FRENCH SHORT RATES negative. (ABSURD as Jean-Claude Trichet might opine.) Again, QUANTITATIVE EASING and the FEAR of non-quality collateral has rendered the BOND MARKETS of the DEVELOPED ECONOMIES MEANINGLESS.
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