Chart of the day: Just look at German two-year paper now
When the financial crisis kicked in, two-year German Schatz paper yielded almost 5 per cent; just look at it now (after super dovish comments from Mario Draghi at last week's ECB meeting). Having spent two quarters consolidating under the European Central Bank's target rate of minus 20 basis points, yields are tumbling again and there is nothing to say this might change. Measured targets suggest minus 40 basis points as a first stage or the height of the triangle at minus 45 - and then the psychological negative 50 just for good measure. Keep in mind Swiss two-year government debt trades at a whopping minus 85 basis points.
Nicole Elliott is a technical analyst