March 22, 2019 German Weakness Strengthens Bond Prices by Lester Murray

The Treasury market is off and running this morning after disappointing news out of Germany. That nation's Purchasing Managers' Index, a key indicator of overall economic vitality, fell far short of analysts' expectations and has pushed the yield on Germany's sovereign Ten-Year into negative territory. The PMI for Germany was already in contractionary territory and the overnight report confirmed that things might be slowing down even more than previously thought. For the U.S. Treasury market, prices are up and the Ten-Year's rise of 5/8 of a point has resulted in a yield below 2.50%. The long bond is up over a full point and is yielding well below 3%.