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While the USA has seen their Treasury yields generally rising since the election of President Trump, Europe and particularly Germany have not been experiencing the same “love.”
In fact, Germany has the second lowest Bund yields in Europe after Switzerland (who maintain their own currency).
German 2 year Bund yields have been dropping like a stone since 2014.
And have been dropping even more quickly since January 2017 after a brief respite.
At the 10 year tenor, Germany has the lowest government bond yield after Switzerland. And the lowest of any nation with a positive bond yield.
The German Bund yield curve is greater than 200 basis points lower than the US Treasury curve after the 2 year tenor.
This comes as Germany’s deputy finance ministers claims that there will be debt relief for Greece.
The continuing Greek debt crisis and Germany’s insistence on not lowering Greece’s staggering debt load are not helping Greece’s financial institutions like the National Bank of Greece.
Here is an unfortunate photo of German Chancellor Angela Merkel.
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