- The 10-year Treasury yield is lower again today - off two basis points at 2.39% - but for an explanation, it's perhaps best to look across the pond where the 10year German Bund slid all the way to 0.94% amid Mario Draghi's promise of more monetary ease and a disappointing Ifo survey.
- Janney chief fixed-income strategist Guy LeBas notes the very high correlation on the long end between Treasurys and Bunds of late. While correlations will fluctuate, these patterns can last for several months, so as long as German yields stay under pressure, there's a "decent probability" U.S. ones will as well.
- "The European interest rate markets are telling us that, one, there’s a very high probability of low inflation or deflation that will last for years to come, and two, that the ECB will be essentially impotent in generating enough inflation to break the eurozone out of this current spiral."
- TLT +0.35%, TBT -0.7%
- ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, SBND, TLH, DLBS, VGLT, UBT, TLO, TENZ, LBND, TYBS, DLBL
at CNBC.com (Tue, 3:02PM)