With the European Central Bank (ECB) likely to venture further into the world of negative interest rates tomorrow, it is not impossible that the rally in German Bunds will continue, even though yields are now at, or close to, record lows. After all, government bond yields in Switzerland, where the key policy rate is -0.75%, are still a lot lower than those in Germany. But even if the ECB does add more monetary stimulus on Thursday, I doubt that the rally will last. Continue reading “What now for German Bunds?”