Thoughts from the Road

The rates complex just missed completing the patterns on Friday and thus had dramatic shifts in the Sun/Mon session. The action 5 years and in has become catatonic. The data points from Germany continue to show a huge competitive advantage building over the rest of Europe.

Away from the day trading community, we noticed 2 consistent themes. 1) The Euro is unloved and its inability to fall is confusing observers and economists alike. 2) There was no sense of urgency that the recovery (and thus the market) was pulling out of the station without them. Most of the people we encountered held a "this will be with us for a long time" view. Maturity, not yield, was the focus.

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