Draghi Put Pushes 40% of German Bond Yields Below Deposit Rate
- Securities due in October 2019 yield below minus 0.2%
- ECB account shows some policy makers wanted October easing
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With yields on about 40 percent of German government securities excluding them from the European Central Bank’s bond-buying program, pressure is increasing on President Mario Draghi to deliver additional stimulus in two weeks’ time.
Germany’s two-year note yields are about 18 basis points, or 0.18 percentage point, less than the ECB’s deposit rate, currently minus 0.2 percent, signaling that traders have priced in another reduction when policy makers meet Dec. 3. The amount of securities with yields below the deposit rate has climbed to $469 billion, reducing the range and amount of debt available to the central bank’s 1.1-trillion-euro ($1.2 trillion) quantitative-easing plan.