by Doug Noland
Credit Bubble Bulletin
Please join Doug Noland and David McAlvany this Thursday, October 22nd, at 4:00pm Eastern/ 2:00pm Mountain time for the Tactical Short Q3 recap conference call, “Managing Short Exposure in Extreme Uncertainty.”
German 10-year bund yields dropped 10 bps this week to negative 0.62%, the low since March. French yields fell eight bps to negative 0.35%, only four bps from March panic lows. Italian and Greek yields ended the week at record lows 0.65% and 0.78%. Spanish yields closed Friday at a record low 0.12% and Portuguese yields at an all-time low 0.11%. European bond prices have an unmistakable correlation to European COVID infections.
European new daily COVID cases have spiked to 120,000, about triple the level from a month earlier. Infections in France surged to a daily record 30,000, with Paris and other cities now under restrictions. Cases have spiked in Spain, the Netherlands, Italy, Germany, Belgium, Greece, the UK and elsewhere.