The Traderszone Network

Published in TZ Latest News 19 January, 2015 by The TZ Newswire Staff

How The ECB’s QE Is About To Send The Most Deflationary Signal Ever

With every passing day, negative 10Y yields across the developed world’s bond market, and not just Switzerland, increasingly appear to be a question of when not if. Paradoxically, the main reason for this long-end deflationary crunch will be an action that the ECB will undertake in three days that is designed to spur inflation, and yet what it will achieve is to send the most deflationary signal possible: a global bond market in which bondholders pay sovereign issuers to issue debt.

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