German Bunds Give Draghi The Finger: 2-Year Hits Record Negative Low -0.39%

Jon Alternative Media, Blogosphere, Economy

As we reported moments ago, Mario Draghi just unleashed another “whatever it takes” speech, this time focusing on the ECB’s fight with the “deflation monster” and explaining how the central bank plans to boost inflation and inflation expectations, saying that “while inflation will remain low for a prolonged period, we see it gradually rising back to 2%. The delay is largely explained by the impairments in the transmission mechanism that lengthen the lag between our accommodative policy stance and price developments.”
And while the initial EUR response was as expected, dropping about 30 pips (but already rebounding on concerns that the Draghi bazooka may truly be empty this time – after all what else can he surprise with as CA’s Valentin Marinov said), German Bunds, especially the short-end, were quick to give Mario Draghi the middle finger and the 2Y has dropped to a quite deflationary all time record low of -0.389%, because all they heard was that the ECB will monetize even more debt.

This post was published at Zero Hedge on 11/20/2015.