I think Merkel is against bailing out Greece.
Good for her! No more bailouts. I hope she can stay the course.
Treasury Prices Jump Again; Flight To Safety Rolls On
Treasurys rallied again Thursday as investors continued to seek safety in low-risk debt from ongoing concerns about fiscally strapped euro-zone nations.
Treasury yields, which move inversely to prices, fell to fresh lows, leaving yields at levels last seen in December. Worries raged on that debt-laden Greece will be unsuccessful in its attempts to cut spending and that its woes will spread to Spain and Portugal, which are also suffering from debt problems. Treasury bills, which were impacted little earlier in the week as Treasurys rallied, also posted small gains Thursday. Key gauges of risk in the market deteriorated as well. The three-month Libor/OIS spread, a gauge of stress in the money markets, rose to 12.8 basis points from 12 basis points Wednesday and 8 in late April.
“Investors, psychologically, have been damaged by the events of the last few weeks” in the euro zone, said George Goncalves, managing director and head of U.S. interest-rates strategy in the Americas at Nomura Securities in New York.
http://online.wsj.com/article/BT-CO-20100506-718035.html?mod=WSJ_latestheadlines