Tag Archive: Eidgenossen

Negative and Close to Zero Yields of Government Bonds and the Reasons

2 years Government Bonds July 18
We judge that negative or close to zero yielding government bonds reflect three points: Risk off environment, long-run currency gains on currency with low inflation, insufficient supply of government bonds for bank refinancing purposes.

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The Biggest Bubble of the Century is Ending: Government Bond Yields

2012-12-26

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2012-12-26

Since 1960 Treasury Yield Chart
Government bond yields under 10 years for safe-havens are close to zero. In April 2013, even 20 year bond yields are less than 3%, What can explain this bubble of the century? Update August 16, 2013: So, 10-year Treasury yields have ended the day closer to 3 per cent. But not as close as they … Continue reading »

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Are German Bunds finally heading for the big slide ?

2012-09-14

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2012-09-14

German BOBL Future Sept 14
Citibank judges that the Swiss National Bank (SNB) does not need a peg anymore. The EUR/CHF exchange rate would be now over 1.20 even if exposed to the free market. Yesterday we showed that the upward move in the EUR/CHF is just the behavior of some euphoric Forex traders. In the meantime we see a completely … Continue reading »

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German Schatz turns negative again

2012-07-18

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2012-07-18

Government bond yields under 1% July 18th
After the first time End May, the German Schatz turns negative: German June 2014 Schatz Average Yield -0.06% vs 0.10% on June 20 Swiss Eidgenossen 2yrs still at -0.4%

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Spread Swiss Eidgenossen vs. German Bund to see further gains

2012-06-29

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2012-06-29

Germany Swiss Spread
The spread between the Swiss government Eidgenossen bond against the Germany 10yrs. Bund will see further gain in the future, after the Euro summit opened the door for ESM direct financing of banks.   Differences between EFSF and ESM explained

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The other risk for the SNB: Will German Bund yields double ?

2012-06-20

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2012-06-20

10 yrs. Bunds
In the latest post we started discussing the implications of a German euro exit for the Swiss National Bank, this time we will look on another risk: The rising German Bund yields.

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Is the SNB prepared for the black swan ?

2012-06-14

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2012-06-14

Will the SNB printing policy lead to inflation and a housing bust when Germany leaves the Euro ? Recently the voices for a German euro exit have become louder and louder. The most recent voice comes from Biderman , the FT says that the rise of German Bunds holds the secret how the eurozone crisis will … Continue reading...

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