TWM - Rampant Eurozone Deflation Creates A Bizarre Deutsche Bank Correlation

As German 10-year bunds were headed towards their first dive into negative territory in 2016, courtesy of the epic Brexit disaster and the overall deflationary environment in the eurozone, the stock of the largest bank in Germany - and one of the largest in the world - was trading with a truly bizarre correlation to the 10-year U.S. Treasury yield. If you think about it, the risk-free interest rate in United States Treasury bonds should have very little to do with the clobbered equity of a large European bank, but the explanation is surprisingly simple.

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