Holy “Schatz”

Holy “Schatz”

Recall what I said earlier this morning: Watch the front end of the German curve — lots of chatter about Schatz making the rounds. Ask yourself whether 55 week highs in inflows to European equities are consistent with record low Schatz yields. Or, as one FX trader put it this morning, “buying safe assets as a hedge for the reach for yield is the unhealthy kind of hedging.” If you're long equities, it is incumbent upon you to explain this to yourself...
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