by: Tyler Durden
July 31, 2012
This is what happens when the BIS is limited to buying EUR and selling gold at one time: something leaks. In this case the Swiss 2 year which is plunging to -0.45% sending the curve negative to the 6 year mark, while in Germany the Bund curve is now negative to the 3 year mark. And so Europe is unfixed again – even though the SNB seems to ‘love’ EUR as it is entirely unable to diversify its reserves which now have surged to 60% EUR as questions over the sustainability of the peg increase.