The Nervous 19! Nineteen European Nations Have Negative 2Y Sovereign Yields (Only One Rate Increase Expected In 2022, ECB’s Stiff Monetary Policy)

Let’s see how The Federal Reserve is going to compete with other central banks when 19 European nations have negative 2-year sovereign yields. Call them the “Nervous 19.” Note that France has the lowest 2Y yield of the big 3 (France -0.664%, Germany -0.593% and Italy -0.092%).

True, The Fed’s reaction to COVID shutdowns was more extreme than the ECB’s reaction.

The ECB’s main refinancing rate is 0% and The Fed’s target rate is 0.25%.

Unlike the US with its 4 expected rate increases, the Eurozone is pricing in only 1 rate increase for 2022 … in October.

The ECB’s monetary policy is as stiff as French President Emmanuel Macron.