As German Bund Yields Head to Zero, They Still Beat U.S. Treasuries

Re:As German Bund Yields Head to Zero, They Still Beat U.S. ... by cinquemb on Saturday February 09, 2019 @11:02PM (#19126308)

Being long one currency, is an implicit short against the rest whether one engages in fx/swaps/cfds/forwards on a pair or not.

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Re:As German Bund Yields Head to Zero, They Still Beat U.S. ... by fauigerzigerk on Sunday February 10, 2019 @02:53AM (#19126796)

Absolutely, but if an institution is taking some form of deposit in euros and promises to make predictable payments in euros then being long euros is not a directional bet for that institution.

Of course the picture gets a little murkier once you start considering inflation caused by exchange rate fluctuations. But that is probably not the main concern in a large currency area with an independent central bank.

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Re:As German Bund Yields Head to Zero, They Still Beat U.S. ... by cinquemb on Sunday February 10, 2019 @04:26AM (#19127054)

We must have different ideas of what fx fluctuations are, +/-500 bps over a decade sure… not +/-500bps on -30% decline line over a decade vs a major pair…

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