With Europe in the throes of a full-blown 2nd wave of the pandemic and annual price deflation set to persist, markets are now convinced the European Central Bank will once again up its bond buying programmes before year end and the last remaining positive yields among euro zone government bonds are disappearing fast. Italian and Greek 10-year sovereign yields hit fresh record lows on Wednesday as benchmark German and French equivalents sank deeper before zero to their lowest since May and March respectively. The euro too is at last responding to the prospect of the ECB doubling down on its already massive monetary stimulus.
Chart by Ritvik Carvalho and commentary by Mike Dolan
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