ECB QE Has Barely Just Begun, and We've Already Seen Massive Moves in Government Bonds
Moves this week in both the euro and in sovereign bond yields have been quite dramatic
Mario Draghi, president of the European Central Bank.
Photographer: Martin Leissl/Bloomberg *** Local CaptionThis article is for subscribers only.
The European Central Bank started purchasing euro-area sovereign debt on Monday, March 9. To say the moves since then in both sovereign bond yields and the euro currency have been dramatic would be an understatement.
This chart shows the current yields on 10-year bonds in the euro region and where those same yields were last Friday. German 10-year yields have dropped from 0.391 percent to just over 0.2 percent. Spanish and Italian 10-year yields have come close to breaking under 1 percent for the first time.