The European Central Bank (ECB) has been much more dovish this year as macroeconomic conditions in the eurozone have quickly deteriorated.
The recent drop of the 10-year German bund yield into negative territory has left many bond investors scratching their heads.
Growth in the eurozone is slowing to stall-speed. The most recent raft of indicators point to weak manufacturing activity, with German data at lows last seen in 2009.
Worst quarter in several years in Q4
Fell by $4trn since January 2018
QE expected to finish at year end
With the European Central Bank set to stop new quantitative easing at the end of 2018 and market chatter about an interest rate increase in 2019, have prospects for the spluttering European economy and financial markets taken a turn for the worse?
Tit-for-tat rhetoric doing little to ease tensions within bloc