Treasuries are LOW (cheap) and their YIELDS are high relative to German Bunds. When you say X is high -- in this case X being Treasuries -- that usually means its PRICE is high. Treasuries are historically CHEAP vs German Bunds. Both GS and Wenzel have it wrong.
You mean "historically low", right?
ReplyDeleteNo, Wenzel is correct when he says Treasuries are historically HIGH relative to German bubd rates.
DeleteTreasuries are LOW (cheap) and their YIELDS are high relative to German Bunds. When you say X is high -- in this case X being Treasuries -- that usually means its PRICE is high. Treasuries are historically CHEAP vs German Bunds. Both GS and Wenzel have it wrong.
DeleteIt's a headline. The chart is clearly showing the spread between interest rates, not the spread between the price of bonds.
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