- 10yr German Bunds hit 0.048 today
- Tomorrow marks inception of Europe's corporate bond buying program
- US bond markets rallied during European hours
- Tomorrow is anyone's game
Bond markets were flat to start the overnight session. Even European bonds didn't move too much at first, but after 5:30am, there was a solid showing among buyers. Whether driven by reality or hope, the word on the street was that European bond buyers were getting in today ahead of tomorrow's launch of the ECB's corporate bond buying program.
That was as good of a motivation as US Treasuries needed on a relatively newsless day. The 8:30am economic data provided a modest boost as labor costs came in higher and Productivity confirmed lower estimates. From there, US bond markets followed European rates into the European close and spent the rest of the day drifting sideways with absolutely no regard for a bounce in stock and oil prices.
