- Yesterday Jim Chanos said he was stunned and scared by the round-trip in Greek borrowing rates which have returned to pre-crisis levels. Perhaps an analyst at Kynikos is pinging him this morning with this one: Spanish 5-year borrowing costs have dipped below those in the U.S., with Spain's 5-year notes yielding 1.78% this morning vs. 1.80% for comparable Treasurys.
- It may be less bubble and more monetary policy. As the Fed tapers and talks rate hikes in a year, the ECB is threatening to launch its own QE. Still, it's at least stunning, and maybe scary.
- Two-year paper in Spain yields 0.61% and the country can borrow for 10-years at 3.21% vs. the U.S. at 2.80%.
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EWP +48% Y/Y