Considering that we are at a 5000 year global all time low in interest rates the markets maybe reverting to the mean...this will be extremely painful. The cost of money has been a reliable market signal right up to the GFC, after which it never reflected the real risk inherent in multiple investment avenues. NIRP is just a facet of that misnomer. Bonds from CCC, junk, investment grade, AT1/CoCo and sovereigns are about to be very expensive to service. A decade long(probably longer) sellside is coming for most developed markets. My take is that that development will tip the balance back to emerging and frontier markets in the long run.
http://www.thefiscaltime...l-Bank-About-Blow-Market

Eurozone is a basket case. Quite possibly the market has stopped pricing in inflation expectations and is focused on increasing default probabilities hence the spike in bond yields.

ECB's QE program runs out in March of next year. The 'blue-chip economy' of the Eurozone is Germany but it is of late extremely anti-QE led by Deutsche and Commerzbank. In addition there is not much monetizing room left for the ECB to explore. This could mean that Eurozone QE has a maximum of seven months...another development being priced in by the bond markets.

Meanwhile, funds from the peripheral EU economies is still piling in the bunds despite falling prices.

http://www.telegraph.co....n-and-that-is-dangerous/

[quote=alutacontinua]DB leading banking stocks into the red today.....

http://www.usnews.com/ne...justice-dept-settlement[/quote]
Deutsche Bank was slapped with a $14billion fine. Single digit prices are almost becoming a reality for this stock. Coming at a time when it can barely walk, this s a good example of Murphy's law at work.

I wonder how the markets will react? Another down trend?

http://www.nation.co.ke/...7230-vud7roz/index.html