So Europe has problems but let's not forget bond markets and their slide into uncharted waters (and the reason).
from Stocktrader
""The stunning move in Treasury yields to record lows early Friday morning signals panic and fear, but it’s not necessarily coming from the United States. As the yields on U.K. gilts sunk to new lows overnight and German bunds dug deeper into negative territory, buying in U.S. Treasurys sent the 30-year bond yield to an all-time low of 2.18% early Friday and the 10-year dipped below its closing high of 1.38% temporarily. Even before the U.K. voted to split from Europe last week, global bond yields have been testing uncharted territory. Easing programs by the European Central Bank and the Bank of Japan have resulted in negative rates in both Europe and Japan, and bond-buying programs have made some longer duration bonds scarce.""
When will we see negative rates in 10y Tbills? And if that ever happens what will interest rates be like in the EZ and Japan? For that matter what will happen to those currencies?
What a mess and CBs are in control? So by buying bonds for QE purposes CBs are pushing up prices in some classes of bonds....another bubble set to burst?
It's more like 'this is what happens when CBs lose control'.
