The spread between the 10-year US and German government bond yields has dropped below a macro bullish trendline, characterizing the widening since 2008.
In other words, the market says the era of US rates being higher than German rates is passe! And therefore, holding EUR shorts is risky.
In other words, the market says the era of US rates being higher than German rates is passe! And therefore, holding EUR shorts is risky.