by mk

Since the sell-off, Marie Diron, one of the report’s authors, said: “The risk that we will run of eligible bonds has diminished greatly.” The yield on German three-year notes has risen back above -0.2pc in the past month.

But Mr Coeure cautioned that the “rapidity of the reversal” was worrying, and that “after several similar episodes, it is yet another incident of extreme volatility in global capital markets showing signs of reduced liquidity”. Bond market watchers have warned that a liquidity drought has led to erratic swings in prices. Jim Reid, a Deutsche Bank strategist, said last week: “It’s a worry that these events are occurring in relatively upbeat markets.”

“I can't helping thinking that when the next downturn hits the lack of liquidity in various markets is going to be chaotic. These increasingly regular liquidity issues we're seeing might be a mild dress rehearsal,” he added.

That dotted line isn't at 0.