We are not alone in thinking the ECB has a lot more easing to do before they head to the policy sidelines. According to Bloomberg, large European fund managers are loading up on European government bonds. German bunds traded at record low yields earlier today at 2.89%. I suspect they end up in similar territory to US yields (just above 2% in the 10-year maturity during the first half of 2009. This will shrink the interest rate differential between the euro and the dollar to the detriment of the euro.