German-US spreads are widening
Spreads and FX rates don't diverge for long.
The market is loaded up on euros because of the expectation Draghi will announce curbs on QE and because of improved Eurozone prospects.
But that momentum will at some point run into the hard reality of the bond market. Buying a US 2-year yield pays 1.56% while a German 2-year schatz yields a negative 0.73%.
That spreads widened today to the widest since 2000.
