After stating that The ECB will relax the previous QE parameters, allowing it to buy bonds with yields below the deposit floor, 5Y German yields have dropped below -40bps. The entire European bond yield curve has steepened dramatically (German 2s10s +12bps to steepest since July 2014).
5Y yields drop below the depo floor…
The long-end is dumping as the short-end is bid…
Sending the yield curve to its steepest since July 2014…



