Ripper US 30yr auction last night. Comparing the convexity of Jp - US 30yrs (at auction):
Only 10%.
Having a squizz at the long term US curve:
Remarkably boring curve all things considered. I'd hazard a guess and say if short rates were higher we'd maybe have an inverted curve (or pretty close)... But we can't have that now can we.
The long end:
And the bund is a bee's *ick away from negative...
At least draghi has done us all a huge favour and reduced the need to use actual data when graphing the german yield curve:
What happens if the FED does raise rates and the old theory; that cross border bond yields are highly serially correlated, is still true? Or are they planning on dismantling that silly old idea too?
Still, if you can't beat 'em join 'em...
