Dr. Constantin Gurdgiev:

No, the Bundesbank is not doing it. The ECB has the deposit facility so that European banks can deposit money with the ECB - there is a deposit facility. That is already at a negative rate. In the markets, if a bank wants to buy German bonds, it is generating negative return. That negative return is more negative than the ECB deposit facility. If the deposit facility continues to reduce, it might also trigger a decline in bonds and they are, in a sense, chasing their own tails because the German economy is a proxy for safe assets in the European economy.