European bond yields continue to fall towards ECB's negative 0.2% boundary
French and German yields have been falling further towards the ECB's -0.2% line in the sand and as they do they will be knocked off of the list of bonds the ECB is willing to buy.
At the moment, German 6m, 2y and 3y bonds are off the list while 1's and 4's are hovering around the level. Yields have dipped into negative territory from 6m-7y bonds
The French short end has been falling to with yields ranging from -0.127% to -0.014% from 6m to 5y
(Numbers taken from Investing.com)
The market is looking for signs that liquidity might dry up and as yields fall the ECB is going to lose more and more bonds to buy, and will have to concentrate on purchases further down the curve
Another issue is that any real returns on bonds with positive yields are going to be eroded if the Europe sees a turnaround in inflation.
The main purpose of QE isn't a money making exercise but the ECB could take a sizeable hit by the time they get to the end of the program and they'll have to split the bill somehow. If Europe is in a better place come September 2016 then it's not going to matter, but if they're not it's more problems piled onto the rest of them