Thursday, May 10, 2012

Today's Major Market Move: German 2 Year Bond Drops 27 Bps in Past 2 Months

The German 2 year had established a floor recently at a yield of .08 that was able to hold for the past couple of weeks. However today's action proved to be too much as yields broke to a new low and the flight to safety in Europe continues.

Click here to go to the live chart.
We noticed a pretty tight correlation between the 2 year over the last 60 days and the DAX in terms of % change (we're working on adding the ability to compare a data set in absolute terms and a data set in % terms in the same chart).

Click here to go to the live chart.
The German yield curve looks very interesting with almost all the directions trending downwards from already historically low levels. There's a traffic jam with the short duration bonds as they converge towards near-zero.

Click here to go to the live chart.
Here's a blow up of all the bonds with duration shorter than 5 years:

Click here to go to the live chart.


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