Bund Spread

The yield on the 10-year German bund dropped below 1% this morning as the German GDP report showed economic decline. Yet the 10-year Treasury is sitting at 2.4% despite flat retail sales and rising jobless claims. Does that spread make sense? Not to me, if you make a realistic appraisal of the U.S. economy. Get ’em while they’re cheap, I say.

We’re all Japanese now.

Edit: looks like I’m not alone. 30-year auction today was beyond strong, yield closed today at 3.192%. Headed for 1-1.5% in the fullness of time, IMO. Now stocks, that’s a bubble.

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