The European bond market has little connection to the American CPI. European rates are determined by a complex market of futures and interest rate swaps betwee

The European bond market has little connection to the American CPI. European rates are determined by a complex market of futures and interest rate swaps between various banks and markets. Knowing that, negative interest rates make plenty of sense, because interest rates in Europe are relative to other currencies -- unlike in the US, where interest rates are based in a single currency.