by Wolf Richter
Glorious times for Draghi’s scheme.
The negative-yield absurdity marked a new and glorious milestone just now: the 10-year yield on German government debt fell below zero for the first time ever. It is currently at -0.03%, bouncing up and down, kissing a positive yield before falling back in to the negative.
German government debt with shorter maturities has been negative for a while. The ECB has just started buying euro-denominated corporate bonds, in addition to government bonds, covered bonds, and asset-backed securities, in an effort to accomplish whatever schemes it has on its agenda.