German 1 year Yields go NEGATIVE again as Euro Prepares to Crumble

by John Galt
January 6, 2012 05:30 ET

Despite the popular belief that the Euro will survive there is ample evidence that the ultra-wealthy and many banks believe otherwise. The examples below are just of the German 1 year yield and the Euroswiss 3 month which both have displayed negative yields at various points in their recent trading history but more so recently as all faith in the ECB has evaporated. Bankers and wealthy investors do not pay central banks to hold their cash unless there was fear of an imminent collapse or crisis. The billions of Dollars and Euros it takes to drive yields to zero or negative is somewhat large and an indication that there is extreme doubt in the current structure of the European Monetary Union. Just as a heads up and point of reference, the U.S. 1  and 3 month Treasury Bill yield has been trading between -0.02% and 0.01% for some time now as well.

(from Bloomberg.com 1/6)

(June Euroswiss futures via Barcharts.com)

If the super wealthy and banksters are preparing for a collapse, shouldn't everyone else also?