Betting on a return of the DeutscheMark! Whilst the news yesterday centered on the fall in US 10yr Treasury yields to levels not seen since 1946, the bigger news maybe that the new German 2yr Bond at one stage yesterday traded above 100. Given that the coupon on the Bond is zero percent than that […]
The decline in Commodities opens the window for deflation
The decline in Commodities opens the window for deflation.- so US 10yr yields look cheap at 1.82%! The sell-off in commodities started in Asia yesterday after the US had marched the complex higher on Friday on optimism that the weak US employment report could stir the Fed into QE3. Steep falls with Copper down near […]