We are back at the top of the range here: 1840 to 1880. Treasuries have been extremely strong as we cannot get a selloff that sticks, and we bounce back with ease. With Spanish and Italian 10 years only 35 to 40 bps above Treasuries, you have a valuation mismatch. 10 yr Treasuries are a relative bargain at 2.65%.
Waiting to establish a long position in bonds after hopefully a good jobs number tomorrow. If we get a consensus or below consensus number, will have to scramble and pay up to buy. Either good or bad number, expecting to get long bonds on Friday.
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Mismatch? You see spread between 10 Yr Us Treasury Yield and Italian equivalent Btp is far far negative at historical level.
I don't know exactly what you mean, but yes, for the past 3 years, Italian bonds are expensive compared to US Treasuries. But if you look back over the past 15 years, Italian bonds actually traded at lower yields than Treasuries for a long period.
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