German 10-year sovereign bond yields turn negative for first time

[MikeWB]

Brexit will kill EU and destroy German banks. Deutsche Bank alone is sitting on   $75 trillion dollars worth of derivatives. That's not a typo! All it will take is some major event (like the breakup of the EU) and it will all go up in flames.







The yield on the 10-year benchmark German bund fell into negative territory for the first time ever on Tuesday morning, amid global growth concerns and jitters over the U.K.'s upcoming referendum on its European Union membership.

At around 8.30 a.m. London time, the yield hit zero and briefly fell into negative territory as investors continued to flock to safe-haven assets. Bond prices and yields move in opposite directions and a negative yield implies that investors are effectively paying the German government for the privilege of parking their cash.

By the end of the European trading day, the yield was still just in negative territory at -0.0020 percent.

A spokesperson for the German Federal Debt Agency spoke immediately after the milestone was reached, stating that the tradability of federal securities is "still very high."

"The federal debt-management strategy is long-term, therefore, the current absolute yield level plays only a subordinate role. Our target remains a sustainable balance between cost and planning security for the debt portfolio," the agency said in an email to CNBC.

The move comes as the European Central Bank has ramped up its bond buying program in recent months as well as investor uncertainty over whether the U.K. will stay in the European Union.

The latter is sparking volatility across financial markets with a beneficiary of the tumult being government bonds. The latest trigger has been two new polls out of the U.K. which showed the Brexit camp is gaining momentum.

An ORB poll for the Telegraph showed 48 percent of Britons would vote to remain in the European Union, while 49 percent would vote to leave.

A YouGov poll for the Times of London showed 46 percent preferred to leave, while 39 percent wanted to remain. Popular British newspaper The Sun also endorsed the leave vote for the upcoming referendum vote on June 23.

"We don't know what is happening with Brexit," said Gareth Nicholson, an investment manager at Aberdeen Asset Management Asia. "The thing we can agree on is that the market volatility is going to increase...the volatility is not good for the broader markets, and that's why you see weakness in foreign exchange and equity."
VIX spikes

The CBOE Volatility Index, widely considered the best gauge of fear in the market, spiked above 21 for the first time since Feb. 25 on Monday while major equity indexes sold off.

The British pound traded at $1.4163 against the dollar Tuesday afternoon Asia time, compared to levels around $1.4600 in late May.

As investors scurried out of riskier assets, they have found comfort in bonds. To be sure, expectations of interest rates staying lower for longer have also supported bonds.

The 10-year Treasury yield was near 1.61 percent on Monday afternoon local time, around its lowest since Feb. 11. The yield on the 10-year and 30-year British government bonds, known as the gilts, also hit record lows on Tuesday morning.

Moves in some bond markets have been even more extreme. The 10-year Japanese government bond yield was at a record low of minus 0.163 percent on Tuesday afternoon.

— Follow CNBC International on Twitter and Facebook.
http://www.cnbc.com/2016/06/14/brexit-news-uncertainty-around-eu-vote-causing-volatility-in-markets.html

[rmstock]

i think thats wishful thinking on part of the Goldman Sachs and Soros sponsored media

[rmstock]

I wrote the following to  ukcolumn :
   
   Dear Mr. Gerrish and Mr. Robinson,
   
   In your broadcast of Tuesday May 31, 2016 at the 11 min mark you
   display a worrying headline "May 2016 : Will Deutsche Bank Survive this
   Wave of Trouble or will it be the Next Lehman Brothers ?"[2] Admitted
   Deutsche Bank has quite some debt on its paperwork balance sheet. You
   mention 71 Trillion USD.  Please be advised that due to Bank
   Deregulation previously reputed Banks like Bear Stearns, Lehman
   Brothers, Royal Bank of Scotland and obviously Deutsche Bank were
   fooled and tricked to purchase recycled mortgage Bonds and other
   fraudulent paperwork, originating from Wall Street.  It was Goldman
   Sachs who used this fraudulent Debt to force Lehman's to take the fall
   and through back-channel communications with London Lehman Brothers was
   liquidated.  A lot of popular Internet programs, like The Keiserreport
   and Jim Willie never discuss whether the created mortgage Debt on paper
   is legally binding. To this very day there never was a real
   investigation into the fraudulent debt creation. Several Investment
   Groups however keep resonating the 71 Trillion in Debt of DB, where the
   recent Seeking Alpha group webpage is most interesting.
   
   Who is Seeking Alpha ? A quick search gave me this :
   
   Seeking Alpha: Stock Market Insights
     seekingalpha.com
      Seeking Alpha is a crowd-sourced content service for financial markets.
      Articles and research covers a broad range of stocks, asset classes,
      ETFs and investment strategies.
     CEO: Eli Hoffmann
     Headquarters: New York City, NY
     Founder: David Jackson
     Founded: 2004
   
   However there are also several Alpha Group's (whom Seeking Alpha is
   longing to search for ? ) :
   
    - Spetsgruppa "A", also known as Alpha Group (a popular English name)
      https://en.wikipedia.org/wiki/Alpha_Group 
   
    - Alfa Group Consortium of Russia
      https://en.wikipedia.org/wiki/Alfa_Group
   
    - Special Group "Alpha" is a branch of the Security Service of Ukraine
      https://en.wikipedia.org/wiki/Alpha_Group_(Ukraine)
   
    - Alpha Group Investigations,
        (a Western Front for the Three above groups?)
      http://www.alphagp.com/ 
   
   Deutsche Bank is the largest bank inside Germany, which besides
   investment tasks also covers regular banking for citizens and small to
   middle size business etc. Germany is the last EU member country which
   has a real tangible economy left in place, not something Americans or
   British can brag about. A bank like Deutsche Bank which is directly
   connected to a real economy should not be given a Lehman's, which
   presumably was only a Investment Bank.
   A lot of publications about Deutsche Bank on the Internet can only be
   categorized as wishful thinking and propaganda, for other sharks and
   hyena's like Goldman Sachs, who was responsible for the first Lehman's.
   Let me end with a very revealing tweet by the United States most Wanted
   whistle-blower Edward Snowden :
   
      02/27/2016 - 19:40 - Tyler Durden : Snowden Sums Up The Presidential
      Campaign With Just One Tweet [1]
      https://twitter.com/Snowden/status/703733273504018432
   
   Yours Sincerely,
   
   Robert Stockmann
   PS.
   [1] http://www.zerohedge.com/print/525392
   [2] May 2016: Will Deutsche Bank Survive This Wave Of Trouble Or
        Will It Be The Next Lehman Brothers?
      Michael T. Snyder  May24.16 | About: Deutsche Bank AG (DB)
      http://seekingalpha.com/article/3977457-may-2016-will-deutsche-bank-survive-wave-trouble-will-next-lehman-brothers