Ambrose Evans-Pritchard writing in the UK Telegraph
- German bond yields have plunged to historic lows
- inflation expectations are collapsing across the eurozone
- prompting fears of a gathering recessionary storm
- The benchmark 10-year bund yield dropped to minus 0.18pc on Thursday and is testing the all-time lows seen during the brief rush to safety after the Brexit referendum.
- Spanish and Portuguese yields have dropped to record lows.
- A closely watched gauge of inflation expectations – five-year/five-year swap contracts – have collapsed this year and raise concerns that the European Central Bank is losing control.
- It is signalling a slide into a deflationary quagmire.
And that’s just the into!
Link here, is gated. I imagine the piece will pop up ungated somewhere soon.