Spanish Bonds Continue Their Incredible Rally

The yield on the Spanish 10-year bond has just fallen below 3% for the first time since 2005.

Spanish bonds - like other European peripheral bonds - have gone on a ridiculous run lately.

As a reminder, this is what the 5-year chart looks like (via Bloomberg). Not long ago, the bonds were yielding almost 8%

By now you should now the story, but just in case you don't:

In the summer of 2012, Mario Draghi issued his famous "Whatever It Takes" declaration, bringing in an implicit backstop for any country that found itself in trouble.

Between that ECB backstop, a slightly improving economy, and ongoing lack of inflation/deflation throughout the Eurozone, there's been every reason to snap up these bonds.