We’re not EU insiders but any of us can get a clue re the Greek outcome, simply by glancing at Treasuries.
Recall that when world institutions think all hells about to break loose, they seek sanctuary, parking their loot in the safest location of earth - US obligations. Thus demand tied to fears of EU contagion drove Treasury prices higher and yields lower. Today we see that has reversed, institutions un-parking their cash, selling Treasuries, yields higher. Thus, the 10 yr printed a 2.88 June/24 (week of panic re Greece) from a 3.10% on June/14. Nothing has changed here, yet the 10 yr last is a 3.08 from a 3.04% yesterday, telling us world institutions are optimistic.
Robert Craven
Recall that when world institutions think all hells about to break loose, they seek sanctuary, parking their loot in the safest location of earth - US obligations. Thus demand tied to fears of EU contagion drove Treasury prices higher and yields lower. Today we see that has reversed, institutions un-parking their cash, selling Treasuries, yields higher. Thus, the 10 yr printed a 2.88 June/24 (week of panic re Greece) from a 3.10% on June/14. Nothing has changed here, yet the 10 yr last is a 3.08 from a 3.04% yesterday, telling us world institutions are optimistic.
Robert Craven
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