Unprecedented negative yields in Europe continued to depress yields on U.S. Treasury bonds last week. The negative yields in Europe have caused an inversion of the U.S. yield curve and set off fears of a U.S. recession. Stocks rose anyway.

The yield on a 10-year German government bond this past week ticked lower, falling to -0.70%, making institutional bond investors from across the globe prefer U.S. Treasury bonds, which offered higher-yields.

Bonds are traded worldwide, and the most liquid types of bonds are U.S.-government guaranteed Treasurys, followed by German government-backed bonds. Since a 10-year U.S. Treasury bond pays a higher yield, institutions from across the globe are buying U.S. rather than German treasury bonds, depressing yields in the United States.