Do You Like Your Spreads ‘Obscene’ Or Don’t You?

Via Kevin Muir of “The Macro Tourist” fame I haven’t written about it much lately, as over the past few months the trade has been quite a dud, but I still love owning US notes versus short German bunds. Going into the end of 2016, there was tons of press as the German bund / US T-note 10-year spread hit the “obscene” level of 235 basis points. It seemed obscene, but this spread had seen those levels before. Yeah sure, the last time the German bund / US T-note traded below negati