Grexit, Schmexit Redux
Nothing to see, folks. Keep moving.
Initial market reaction to Greece’s bank closure and impending default to the International Monetary Fund has given way to indifference. The US 10-year yield briefly dipped to 2.29 before recovering to 2.39%, while the Euro has risen back to 1.11 to the US dollar after falling momentary to 109.50. German 10-year Bund yields are back to 0.83% after dipping momentary to 0.70%. The price of gold, notably has fallen. Risk parameters in the market spiked for a couple of hours and are rapidly returning to normal.
Asia Unhedged never took the Greece farce seriously: this is Menander, not Aeschylus, with Greek Prime Minister Alexander Tsipras in the role of the dolosos servus (the ancient ancestor of Pseudolus in “A Funny Thing Happened on the Way to the Forum”).