Chart of the day: Crisis mode in the euro zone

PUBLISHED : Friday, 18 July, 2014, 12:06am
UPDATED : Friday, 18 July, 2014, 12:06am

Investors seem to be thinking that the euro-zone economy is again in imminent danger of collapse, at least if the chart of the 10-year German Bund yield is any guide. It has sunk steadily this year and is now within a whisker of the record low of 1.2 per cent hit in June 2012 when investor confidence in the euro zone collapsed and European Central Bank president Mario Draghi was famously forced to promise to do "whatever it takes" to ensure the single-currency bloc's survival. Whatever confidence those words inspired, they were insufficient for yields to push even past preliminary Fibonacci resistance to retrace the 14-month plunge in yields preceding their utterance. With yields retesting record lows again, it will take something substantial to turn them around.

Nicole Elliott is a technical analyst