Bunds (Germany government bonds) are rallying today as investors seek safety in the best credit within Europe and shun riskier European credits like Greece. This helping push European rates lower vis-a-vis their American counterparts, supporting the dollar.
The 10-year UST/Bund spread has widened to 43 bp today from 40 bp yesterday.
EUR/USD has tumbled back to 1.4523/25 as Greek jitters weigh on the euro again.
