Overview: The lurch lower in global interest rates continue. The US 10-year yield is at new 15-month lows, five basis points through the average effective Fed funds rate. Late yesterday, it appeared that 10-year German Bund yields slipped below similar Japanese government bond yields for the first time since Q4 16, but when the JGB market opened, the 10-year JGB yield fell a couple more basis points to minus 10, the most negative since August 2016. The 10-year Bund yield is steady near minus eight basis points.
Peripheral European yields are firmer as they are