These Charts Say We May Be Long Overdue For A “Flight To Safety” Episode

As explained in these pages exhaustively, last month's "Holy Schatz" moment that saw the front end of the German curve richen dramatically was probably due more to the ECB buying below the depo rate than it was to a flight-to-safety bid associated with rising Dutch and French election risk. The market's initial interpretation was that the plunge in German 2Y yields was attributable to a combination of i) ECB buying below the depo rate, and ii) a safe haven bid tied to political jitters. The