Greece in the headlines. Problem - potential rescuers cannot agree on a package, none wanting to be hung out to dry.
There is fear then that French and other European banks, those with significant exposure, will be downgraded, then have funding problems - something similar to our crisis of Q4 ‘08.
Thus, we see significant "flight to quality" meaning flight to US Treasuries. This largely explains the movement in the 10 yr yesterday from 3.10% to 2.97%.
Robert Craven
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