Investors who see quantitative easing as an evil that has permanently distorted financial markets have passed around the statistic that European junk bonds now offer a lower yield than a 10-year Treasury note. On Friday, the BAML Euro High Yield Index, a benchmark index for European junk debt, was 2.21%, seven basis points above the 10-year Treasury TMUBMUSD10Y, +0.16% yield, which was at 2.28%. It’s no surprise that a situation in which junk bonds, an asset class known for their propensity to blow up from time to time, are so expensive that they offer less yield than a Treasury note, an asset considered virtually risk-free, would raise eyebrows (see chart below). Credit: BAML, St. Louis Federal Reserve The average yield for a European junk bond is now below the benchmark 10-year Treasury yieldvia