10Y Treasury-Bund Spread at Highest Levels of Last Decade

As central bank policies in the U.S. and Europe appear to be headed in very different directions, bond markets have taken note.  Not since June 2006 has the spread between 10-year government bonds in the U.S. and Germany been so extreme.  While yields have fallen in both benchmarks, the difference by which the U.S. treasury exceeds Germany's bund is now comfortably in excess of 100 basis points: