Greece is a mess so everyone will rush into Bunds on Monday. I can’t see any way that Greece will be saved (see Prisoner’s Dilemma) but I have a sell on Bunds that I can’t ignore. They are rich and their anchors are falling:
The place to hide is in the UK since Gilts have been hurt recently compared to everything else:
So when you put them together…
The ratio of Gilts to Bunds is misleading since the former is about twice as volatile as the latter but the relative value indicator is working anyway. If I can get a relatively weak opening in Gilts then I’ll take the plunge.
It’s probably wise to save some powder to be able add later.
