Bond Outlook June 22nd

As we mentioned earlier, at least we have something to distract our attention from US politico-economic mismanagement – now we have European politico-economic mismanagement! Nevertheless, the huge difference between the two is striking:

• In the USA the general mood and certainly that of the Administration is that all is well and no change is needed. Only pessimistic, and unheeded, commentators say otherwise (although we surmise that Greenspan silently agrees with the commentators – see below).