So how have bond yields got so divorced from what's happening in the real economy?
One key reason is the search for higher returns among investors, as interest rates show no signs of rising again, brought them to the peripheral euro zone countries.
Another is that the U.S. is in the process of rowing back its quantitative easing program via a process known as tapering, while the euro zone may be just about to embark on a similar program, so looks more attractive in the short term. And the strength of the euro also attracts investors.
Still, there are concerns that the market is misjudging the ECB's capacities.
"There's too much pressure being put on the ECB to fix the euro zone's issues. The euro zone is going to get saved by global growth," Kevin Gaynor, head of macro strategy, Nomura, warned CNBC.
"It (cutting rates) smacks of desperation."
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