Intraday Market Thoughts

Archived IMT (2010.02.11)

by Ashraf Laidi
Feb 11, 2010 19:30

The spread between German and US 10-year yields fell to the lowest since July 2007 at -0.49% (representing GE-US spread). SEE CHART The latest jump in US yields to 3.72% following Bernankes exit strategy speech (see yesterdays IMT) combined w/ falling Eurozone yields is adding to euros downside from a yield spread perspective. Today's euro rebound despite no concrete plan for Greece out of the EU lacks the fundamental legs to continue beyond $1.3770s. The cyclical pattern of the GE-US spread suggests further declines ahead into the Spring.


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