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Neno's Place Established in 2006 as a Community of Reality


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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    European Bonds – The Hedge Against the Euro Collapse?

    Lobo
    Lobo
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    Posts : 28411
    Join date : 2013-01-12

     European Bonds – The Hedge Against the Euro Collapse? Empty European Bonds – The Hedge Against the Euro Collapse?

    Post by Lobo Tue 19 Jul 2016, 4:17 pm

     European Bonds – The Hedge Against the Euro Collapse? UB1798-Y-MA
    (Note: The blue labels mark the change in the issues we used to create this perpetual index for long bonds)
    Germany sold 10-year debt at a negative yield on Wednesday of last week, becoming the first Eurozone nation to do so and setting a further milestone in the relentless fall of government bond yields around the world. However, there is a real crisis brewing. Bonds with negative yields, which are now about one-third of the bonds in Europe, are NOT eligible for the ECB to purchase in its program. This means that when the sentiment changes, the bonds will crash unbelievably.
    This is similar to the US bonds during World War II when the government ordered the central bank to support the government bonds at par. When that directive ended in 1951, the bond market crashed. This is what awaits us, for even the ECB cannot buy negative yielding bonds. Right now, the negative yield on 10-year German bonds is actually a bet against the euro as players are betting that the euro will collapse and they will end up with Deutsche marks once again.
    https://www.armstrongeconomics.com/international-news/europes-current-economy/europe-bonds-the-hedge-against-the-euro-collapse/

      Current date/time is Fri 15 Nov 2024, 11:31 pm