Bund yields (and Treasury yields) and stocks have spiked in the last few minutes following headlines from Germany’s Der Spiegel that the government is proposing a EUR500mm debt deal to fund climate protection.
Development Minister Gerd Müller demands more financial resources for international climate protection.
“There is less and less time to achieve the goals of the Paris Agreement, and in Germany we must increase our efforts and invest an additional 500 million euros in international climate protection next year,” the CSU politician told SPIEGEL.
The money should come either from the National Climate Fund or from the federal budget, the minister said.
“This will enable us to finance an innovation and investment offensive for climate protection measures in Africa and, among other things, to strengthen international agricultural research,” said Müller.
More debt, more wasted spending, more fiscal irresponsibility – buy stocks, sell bonds!
Yields are spiking…
As are stocks…
However, FX Macro sums things up well…
https://t.co/bUC244PsdX if this is the story its a nothing BURGER!
— FxMacro (@fxmacro) August 8, 2019
What would you do if you raise debt at minus-50bps?? This is sheer insanity – MMT is here and Draghi/Lagarde will do more of the same til it all explodes.