Bunds helping to fuel the euro bid

Can’t keep the euro down

There is talk about some big unwinds of bets on bunds and against Treasuries today. Trades that were initiated in late October.

German 10-year yields are up 4 bps today as part of a broad European fixed-income selloff. Meanwhile. US 10s are down 1 bps to 2.33% as risk aversion dominates.

The spread had been widening (in the US dollar’s favor) since September but has backtracked in the past couple weeks.

The correlation in day-to-day moves with the euro has been low lately but it’s always there in the background.

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