Flight to liquidity reminiscent of January and February
As the equities market sells off, it's worth noting how much the sovereign bond market is rallying at the same time. I am seeing the 10-year US Treasury bond quoted at 3.079%, well down from a level just over 3.25% at the beginning of October. And German 10-year bunds are trading at 35.3 basis points where they were at nearly 60 basis points early in the month.
What I find interesting though is that Italian 10-year yields actually dropped...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.