German 2-yr yield now 6-bps below the deposit rate

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The German 2-year Bund yield recovered from lows, but still trades 6 bps below the deposit rate of -0.30%.

    Yields recovered after the ECB cut deposit rate by 10 bps as expected. The 2-yr yield recovered from the record low of -0.452% to trade at -0.36%.

    Draghi, in his press conference, announced an extension of the EUR 60 billion QE program till end-March 2017. Overall, it appears the ECB failed to meet the market expectations, which is evident from the uptick in the German yields.
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