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.

Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: