July 18 - Germany sells 2-yr bonds at auction, with lenders paying Berlin for the privilege. Finland joins the negative yield club, and the polarisation of the euro zone bond market continues.
And historic day on the eurozone bond markets the first. Bundled in a negative yields. Germany and bottles over four billion euros of -- funds to yield might this not going to -- 6%. I'm joined -- -- Smith economist. I cop and London dawn the historic day hasn't said they but the really staggering thing. From the enemy was that the bond was up from the previous -- -- I think we're a little bit astonished by got a couple is so I think times. For the auction. A -- and surprisingly high given given that these the negative yields the coast and -- highlights just the strength of them on both a kill you -- sudden death at the moment. Under you're seeing that across other countries as well on the number -- other countries' bonds and also I'm paying negative yields. Yes -- -- have cross is on the edge. Policy Austria. Lot of people talk about Netherlands as well -- that are six countries now it. Negative yields being known around. The -- aside I think -- -- pretty much on the extent possible since coming through tomorrow. But is being missile might -- dropping new levels of the very -- -- the cut in Coolio resign. And it just highlights the and it's I guess ultimately investor nervousness about what I know and -- -- it. The outlook for the Euro itself. It's just flight ready to quality. So the model was a quick stall when the primary market certainly from Germany today what's it like on the second DiMarco I'll be seeing these new lure -- and yields on decent volume on -- but it spit out today. But the critics -- levels. Font quite blunt trading levels the -- -- look pretty much every US. Including contract this morning very low levels of activity going on through those contracts. So -- it's not doing an open office secondary market trading activity which is generally very weak across a whole range of massive losses in fixed income in the -- side. Slots. Did pretty good business spent. Across fixed income. Instruments government bones activity really is quite -- at the moment. -- -- almost say there's a clear pull my position of the eurozone bond market. I'm much more openness elastic band he stretched. I think it has. That's ago. You know if you look at the it spreads so quickly in Spain against cool eurozone now. They really are approaching that I mean -- plays very close missile timeline to get stuck cool you're -- -- AAA. -- government that. You know that that this doesn't seem to be anything in the immediate future content things around when they begin to put us typically fairly quiet. Period of -- at the end of the trading activity and the markets honorable and pianist. This time -- this strong emphasis -- direction or the other. Then it could be potentially move the market quite a long life so in. You know it's gonna be really interesting sum up. So you think France is next -- -- the negative you quote. Yeah we're on the edge at the moment I mean news you need to stop cities dec fourteenth we've got. Pretty much negative yields then. To -- is barely in positive territory. But given the trend in these cool cool rights. In I think very likely you'll see that maybe today it's their fears though we -- I have to to mention seeing evidence. Of a push outs we yield missing at a particularly in some of the the repo markets to recover. You know he'll feel levels and Julio aside the solo now. That was being put a lot of invested them on the repo markets in particular with some of the high yielding peripherals that which is fighting this thing so it. The united -- of the fact that these very low it and sub zero yield levels and cool -- -- -- -- -- I think generally contributing to a more depressed trading environment. Now are encouraging. -- the yield quote peripheral countries. Okay John thank you very much my finds that. I caps don't Smith join us at this time each week day the market pulse a snapshot of what's moving on financial markets and why. I'm Jamie give up the some voters.