Draghi Derangement Syndrome: Negative Bund Yields Drop Below Less Negative ECB Deposit Rate

For the first time ever, the yield on the German 10Y Bund, considered as Europe’s go to safe asset, dropped below the ECB’s -0.40% deposit rate, as consensus forms that the ECB will cut rates by at least 10bps in September, if not sooner especially with Christine Lagarde – widely perceived as just as dovish as Mario Draghi if not more – set to head the ECB.