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Tuesday, January 06, 2015 3:13 PM

In Race to Negative Rates on 10-Year Bonds, Switzerland Leads Japan

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In the race to see which country will be first to hit zero percent or below on 10-year government bonds, Switzerland in in first place at 0.219%, Japan is second at 0.295%, Germany is in third place at 0.447%, and the US is not even in the running at 1.963%, with numerous European countries having lower yields.

Switzerland 10-Year Bond Yield

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Japan 10-Year Bond Yield

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Germany 10-Year Bond Yield

German and Swiss rates rates are negative everywhere from 1-month to 5-years.

Switzerland 5-Year Bond Yield

Germany 5-Year Bond Yield

Silver Ribbon Winner Announced

Switzerland won the coveted gold medal in the prestigious 5-year yield category on November 11, 2014. Germany won the silver medal in the 5-year yield category in a stunning come-from-behind victory after trailing Japan by as much as 130 basis points (1.3 percentage points) as recently as 2010.

Yield on the Spanish 10-year bond is 1.64% compared to 1.963% on the US 10-year treasury note.

ECB president Mario Draghi believes QE pushing rates even lower will cure Europe.

With yields this low, how can QE possibly do anything other than create even greater risk in sovereign bond speculation?

Correction: I originally posted Germany won the race for negative yield on the 5-year bond. I somehow overlooked Switzerland. Charts added.

Mike "Mish" Shedlock

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