The European Central Bank's (ECB) started its massive 60 billion euro-a-month ($66.3 billion) bond-buying program on Monday with analysts arguing over the effect this would have on the world's fixed income markets.
As soon as the start was announced last Thursday, yields on bonds across Europe shot lower – with bond yields and prices having an inverse relationship.
Sovereign yields are at record lows for many countries and have even crossed into negative territory. The spread between the 10-year U.S. Treasury and the 10-year German bund has widened out to its widest level in over 25 years. By Monday, 10-year German bunds were yielding 0.386 percent while Italian and Spanish yields have been squeezed to around 1.3 percent.
However, Michael Gallagher, the director of research at independent, global research organization IDEAglobal, believes this move could only be short term.
"If you're looking out, sort of, six months from here European yields are going to be higher," he told CNBC Monday.