Want to know where Treasury yields are headed in the next two weeks? Look to Europe
In the short-term, if bond traders and investors flee the euro and European bonds and pile into U.S. Treasuries, Treasury prices will up and yields go down despite any pick up in U.S. inflation. That would confound bond bears betting on falling prices and rising yields. So what are the odds of such a flight to the safety of U.S. Treasuries?