The U.S. Treasury market will outperform their European counterparts. The yield spread is making Treasuries more attractive.
The weakness in the housing market is going to prevail, and that is a harbinger of things to come for the rest of the economy. I bought Treasuries yesterday and plan to buy some more in the new year.
We are still keeping our bullish view on Treasuries. We expect to see Treasury yields peak soon.
We should accept a weaker housing market is ahead of us and that is going to hurt consumption.
