As Mario Draghi and the EU break out the checkbook to begin its QEuro purchasing, there are very curious moves in the European bond markets.

Germany’s 10-yr bund moved 16% with a yield of 0.22%. Why would Draghi be buying German bunds?

Surely the sturm und drang and foot dragging that went into the decision to go down the QEuro road was not whether to buy German bunds.

The reporting at the time was how the northern European countries — the ones with economic growth — did not wish to bail out the PIGS.

However the first moves by the EU appear to be buying German — or better yet — trouble Deutsche Bank paper.

I’m sure in the negotiations German Chancellor Angela Merkel and her finance team made sure Germany and its biggest bank was made whole before any PIGS got to the trough.

Another German benefit for its exports is the falling value of the euro vs the dollar. On Tuesday the euro sank to $1.07 mark as greenback strengthen.