Eurozone Tragicomedy Leads to the Printing Press
How will the never-ending Eurozone crisis finally end? All roads lead to the printing press...Recently I have said, "watch the bond market." The action in U.S. Treasury Bonds makes for a good risk barometer. If bond prices rise and yields fall, that means "risk off" is back on the menu.
That is what happened this week. The yield on the 10-year note has fallen back below 3%. (When yields are falling, bond prices are rising.)
The big spike in yield came as markets soared in the final week of June. That was the burst of stock market euphoria coupled with a "problem solved" verdict for Greece and two pieces of positive manufacturing data from the U.S.