As an indication of just how royally… busted… things are in Greece, note the most recent GGB curve below. While the 10s30s inversion is not too surprising as at this point nobody expects Greece to be solvent for 30 years, what is more amusing is the inversion of the 6 Month – 1 Year points. Furthermore, the surge between 3 and 6 months over almost 300 bps indicates that the market is pretty much convinced D-Day for Greece will occur, as we expected, sometime between July and September. Which is two months before the Mid-Terms…. And is two months before the deadline that the fmr Israeli Deputy Defense Secretary said Israel will likely have to attack Iran by. Second half of 2010 should be significantly more volatile than the past 12 months.
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