VTWO - Hello QE Trade

You didn’t have to see the Fed’s press conference last week to know that we’re heading into a global easing cycle. Instead, you could’ve watched front end yields collapse (the rate cut effect), curves flatten (forward guidance effect), and corporate bonds rally (a QE effect).

Not to be outdone by Draghi, Powell and Kuroda injected their own doses of dovishness on the yield curve, leaving global government bond yields standing at a pathetic 85bp now. In fact, the global stock of negative-yielding debt topped $13 trillion.

(BAML)

Just to add a little more granularity to