Via Bloomberg
The weak German data out recently has created a stall in the rise of bond yields. However, if Brexit is solved, Trump doesn't stop importing BMW's , and Washington and China make even an attempt at a deal then Germany's industrial orders should pick up again. However, one area of concern in Germany was reported by Bloomberg which was the record highs in vacancies with record lows in the German unemployment rate. Have a look at the chart below to see the issue:
The report went on to explain that German companies have been complaining about the lack of highly skilled experts, which you might expect, but also the shortage of employees who don't require any training. Apparently almost every vehicle of a parcel delivery service is searching to fill a vacancy. Year earlier, this would not have been the case. The reality is that even though unemployment levels are falling the number of vacancies are still close to record levels. The upside of this is that wages and private consumption have positive pressure in the pipeline. If domestic demand keeps up and some of the global risk dissipates that we could start to see German yields rise again. (0% did seem a bit overdone). Please read here for the appeal of negative yielding bonds.
