German debt has been the real play in Europe. The general view is the Euro will collapse and they will end up with Deutsche Marks. This does not appear to be a real trade. Nevertheless, this has driven German rates lower than the USA. We are seeing a correlation of dates for timing and this is quite strange. The ultimate trade will be to short the German 10 year against the US 10 year. Not yet – but it is shaping up.
We will be starting the blog soon on the Institutional site. We will also be offering the matrix on world debt spreads.
