One economic indicator that often goes under the radar but is worth paying attention to is the difference between key US and German fixed-income benchmarks. This indicator can provide valuable insights into the state of the economy. Currently, the yield on the 10-year US Treasury note is significantly higher than its German counterpart, with a differential of 200 basis points in favor of the US. This difference has only been reached three times since the start of 2020.
The current widening gap between US and German fixed-income benchmarks is a significant development that investors and analysts should keep an eye on. The current level of 200 basis points is well above the low of 90 basis points seen over the past three years, and is just short of the high of 214 basis points. This indicator can provide valuable information about the relative strength of the US and German economies, as well as insights into global market trends.
While mainstream media may not always focus on these types of indicators, they can often provide important clues about the direction of the economy and financial markets. By paying attention to lesser-known indicators like this one, investors and analysts can gain a deeper understanding of the economic landscape and make more informed decisions.
