A string of shocks has created uncertainty for economies around the world. While the effects of some of these shocks are starting to unwind, it may be some time yet before we see volatility in activity and prices subside, and a new equilibrium settle in. Notably, my remarks today have focused on the current economic situation.
On 18 November 2015, Germany issued 2-year bonds at a record low of –38 basis points! The spread of the US 10-year yield over the equivalent maturity German bond is now trading around 175 basis points, close to its historic high of 190 basis points.