US 10 Year is the cheapest in G-7 - and close to historic highs...

US 10 Year cheapest in G-7! This is one of the reasons for my change to US fixed income and short US Dollar.

 

https://twitter.com/Steen_Jakobsen/status/504586726703374336

 

 

US 10 Year spread vs. G-7 equivalent now at @ 79 bps - close to all time high... as the chart indicates there is considerable mean-reversion in this data serie.

The market is long, very long the US dollar into ECB and FOMC meeting where consensus quietly is looking for 10 bps cut @ ECB, maybe even announcement of "private" ABS and in the US the regional banks keeps wanting discount rate normalised, but..... reality is close by....

I remain long US fixed income - and will add on any sell of... long investors could use IEF

 

 

 

Med venlig hilsen  |  Best regards
Steen Jakobsen  |  Chief Investment Officer

 

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