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.
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).
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.
Here's a blow up of all the bonds with duration shorter than 5 years:
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