Japanification hits Europe as Germany's 10-year yields fall below 0%
Bond yields globally were already under pressure earlier in the day but Germany's woeful factory activity data just kicked things into overdrive and is accelerating the drop in bund yields today.
The bright side for the euro and yield lovers is that whenever Germany tends to come into contact with 'Japanification', yields tend to rebound shortly afterwards as we have seen in early 2015 and mid-to-late 2016.
That said, this time around is more of a synchronised drop and with headwinds surrounding the global economy still blowing strong, it'll be a tough argument to say that things are going to get better in the near future.
