Currency Wars: Greek 10-Year Bond Yield Dips Below 2% as Bets on Rate Cuts Rise

-edited

For the first time ever, Greek 10-year bond yields dipped below 2%.

Hooray!

For a brief time today, the yield on the Greek 10-year bond dipped below 2.0%.

US Bond Yields vs Europe

  • US: 2.05%
  • Greece: 2.01%
  • Italy: 1.50%
  • UK: 0.68%
  • Portugal: 0.43%
  • Spain: 0.36%
  • France: -0.11%
  • Germany: -0.37%
  • Switzerland: -0.67%

Figures from Trading Economics.

Humorous Comparison

Dysfunctional Europe

Negative Yields Coming?

Cutting Time?

Let's Bet on It!

Shock and Awe?

Global Currency Wars On

In case you missed the general idea, global currency wars (not so cleverly disguised as interest rate policy) are hugely underway.

And please note that the ECB is following Japan's model and it did not do Japan any good.

Is the US Supposed to Follow?

For discussion of the resultant bubbles, please see Fed's Asymmetric Bubble-Blowing Policy in Pictures.

Also note Shock and Awe Needed to Un-Invert the Yield Curve: Half-Point Cut Not Enough.

Mike "Mish" Shedlock

Comments (19)
No. 1-12
shamrock
shamrock

Some people got things very very wrong 7 years ago.

Webej
Webej

There's another way to view negative interest rates -- the entire credit balloon is slowly deflating. Slowly instead of selectively, because they are still injecting cash, preventing a repricing of credit and seeing assets move from weak hands to strong. Slowly because they are terrified where a more "natural" resolution of the rehypothecation recursive hall of mirrors would actually stop at. Slowly because we are buying time at the cost of ???

Bronco
Bronco

"Is the US Supposed to Follow?"

...

Monkey see, monkey do

Greggg
Greggg

Safes became popular in Japan. When does the popularity catch on?

Bam_Man
Bam_Man

Worthless currencies/bonds do not pay "interest". That is the lesson here that many yet need to learn. And they will, in time - the hard way.

abend237-04
abend237-04

"global currency wars (not so cleverly disguised as interest rate policy) are hugely underway." BINGO!!! This is precisely what is happening. And, as David Steadman might observe, we're witnessing widows and orphans cliff-diving for yield into 10 year Greek bonds... Cue Paul Krugman sagely cautioning against any longing for the gold standard as, "unworkable" in a modern economy. It is indeed unworkable if you're a politician peddling a free lunch lie.

abend237-04
abend237-04

I meant David Stockman. The edit function ignored me...twice.

thimk
thimk

well back at the ranch(slight deviation but symptomatic ) , booked government insured cd's at 2 %. 2 % flat 5 years out !.Talk about yield curve compression. I am PO'ed . thanks feds . Is that all you can give me for my hard earned money ? I waited many years for interest rate normalization that will never happen. I am such a fool. a musical tribute is in order (P.S gold/silver shining!)

lol
lol

Taking the ez way out never works (ever),Central Banks printed themselves into a corner (literally)where money printing is the only option to keep the scam goin and buy a few more years,know they're printing just to buy a few more months,next year they'll be printing to buy a few more days (hours),next exit ……….collapse!

Casual_Observer
Casual_Observer

There is really no other choice because of the debt that has been incurred. We are going to 0.

FromBrussels
FromBrussels

virtually bankrupt souvereigns borrowing at practically 0% : this must be a text book example of unsustainable insanity ..... Well, maybe I am crazy myself ....or damn right !