The Scarcity Of Eurozone Public Bonds A sign To Scale Back ECB’s Purchases Sooner Or Later
ECB’s bond-buying scheme creates some bout of scarcity on the market, but not necessarily resulting in lower yields. From their temporary lows after the Brexit shock, yields on European government bonds have rebounded in a material way. In the case of 10-year German Bunds, the increase was from -0.2% to +0.3%, while their French counterpart moved from 0.1% to 0.9%.