There is only one safe-haven on God’s green earth and it is the US Treasury note.
Just look at the spread of German yields over US 10. We’ve moved a gigantic 60 bp in just over two weeks while the euro currency has plunged. Clearly a sign that whatever trust the market had that the EU would sort this thing out eventually has been lost.
A German 10 will pay you 33 bp more than a T-note, a present, a supportive factor that could cushion the euro slide (just as that 19% cushion in Greek yileds should cushion it!
