Ahead of Thursday’s ECB meeting (and also a little a bit ahead of the FOMC meeting next week) bond yields aren’t that far removed from their recent lows as punters are doubling down on those ECB easing bets. A case in point is the EONIA forward curve, which keeps sagging. In fact, the lowest point of the yield curve, the 15m1m, reached an all-time low of -0.65 on Friday. At pixel time we clocked it at -0.64. And at -0.346 the 10y bund yield is just 5bps above its all-time short-of-the-century low. 10y peripheral spreads remain relatively tight too on QE bets. We still interpret this constellation of rates and bond yields as a mix of a modestly sized QE program and rate cuts. For the full report, click HERE