The Nervous 19! Nineteen European Nations Have Negative 2Y Sovereign Yields (Only One Rate Increase Expected In 2022, ECB’s Stiff Monetary Policy)

Sharing is Caring!

by confoundedinterest17

Let’s see how The Federal Reserve is going to compete with other central banks when 19 European nations have negative 2-year sovereign yields. Call them the “Nervous 19.” Note that France has the lowest 2Y yield of the big 3 (France -0.664%, Germany -0.593% and Italy -0.092%).

See also  The Debt Ceiling Drama Needs To End. The markets are getting extremely nervous as we approach the X-Date. The CDS prices all across the curve have shot up considerably, and the 1M T-Bill is now the highest since 2001

True, The Fed’s reaction to COVID shutdowns was more extreme than the ECB’s reaction.

We are primarily funded by readers. Please subscribe and donate to support us!

The ECB’s main refinancing rate is 0% and The Fed’s target rate is 0.25%.

See also  Bidenville! Case-Shiller 20 Metro Home Price Index Growth Goes Negative (-1.15% YoY In March, Seattle Down -12.43% YoY, SF Down -11.22%) While Commercial RE Price Growth Went Negative Too

Unlike the US with its 4 expected rate increases, the Eurozone is pricing in only 1 rate increase for 2022 … in October.

The ECB’s monetary policy is as stiff as French President Emmanuel Macron.



Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.