Since the ECB announced its open ended QE program we have seen numerous parallels being drawn with Japan’s amped-up QE program announced in April of 2013, but telegraphed in late 2012. One of those parallels is that like Japanese financial stocks, Europe’s financial stocks should experience a sharp rally in the coming months.
The EUR is trading at levels not seen in over a decade, in the wake of the ECB’s big QE announcement today.
Has any government debt market ever had such a negative yield curve as Switzerland? One-year Swiss government bonds are currently ”yielding” -114 basis points. One week ago, one-year bonds were at -38 basis points and one month ago one-year bonds were at -23 basis points. Astonishingly, 10-year Swiss government bonds are ”yielding” -20 basis points.