Treasuries and the US dollar both rallied hard today as panic broke out in Greece and equity markets worldwide.

Video of Greek Riots

That video is from yesterday. Tensions rose again today.

At one point the S&P; futures fell all the way to 1056 from an opening at 1163. I have seen these kind of days close green, but the treasury market sure isn’t buying this rally.

Yield Curve as of 2010-05-06 3:15PM EST

Bullish Flattening of Yield Curve

That chart shows a bullish flattening of the yield curve as I expected. Those expecting a bearish flattening (yields rising) got their clocks cleaned today as treasury bears were slaughtered.

Mike “Mish” Shedlock
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