Wednesday 06, June 2012 by Mark McFarland
Europe - this time it's serious
Record lows on G7 bond yields show that deflation fears are now dominant; bond investors are now paying to lend to Switzerland and Germany; the European Central Bank (ECB) must cut interest rates this week; faith in European banks is waning; retain a preference for non-commodity sensitive / hard currency debt; gold’s recent co-movement with USD hints at market starting to form a bottom.
