Kevin Flanagan, Head of Fixed Income Strategy, WisdomTree | While we don’t envision the UST 10-year yield revisiting the aforementioned 2018/2019 levels any time in the foreseeable future, it no longer has the same tailwind speed ‘at its back’ when ‘thinking globally’.
Asoka Wöhrmann (Deutsche AWM) | Negative interest rates are new economic territory. However, as yet, there is no sign of a major cash exodus to avoid sub-zero yields.
MADRID | The Corner | Thursday was shelter assets’ day due to the tragedy of the Malaysian Airlines passenger hit by a missile in Ukraine, the hardening of the Russia sanctions and the worsening of the conflict in Palestine, analists at Bankinter commented. The Bund reached a new historic low of 1.14% (the previous record was 1.17%) and the yen and Swiss franc appreciated up to approx. 137 and 1.214 respectively.
MADRID | By Ana Fuentes | Now that the ECB will charge banks for keeping them their money, don’t be surprised if some short-dated core sovereign bonds start yielding negative, Bond Vigilantes remark. Actually we’ve seen that before in the EZ: in August 2012, German authorities received with open arms 750 billion euros in deposits of its eurozone neighbors, mainly Spaniards and Italians. That intense demand drove the prices of short dated bunds to levels which produced negative yields.
By Pablo M. Simón and Inés Abril, in Madrid | Panic is gathering momentum, and money is flying away from Spain into other countries of the euro zone. The latest data from the national balance of payments show the fastest flight of capital so far, even higher than that after the collapse of Lehman Brothers. The bad new is that the spiral of fear that affects investors is causing uncontrolled reactions:…