There has been a lot of economic shuffle going around the globe with the global stocks not increasing from the recent highs and remaining below the 8-month peak. There is a huge demand growing because of the German debt crisis as well as slowing of Euro zone growth. Investors have also become very cautious as the debt problems rose in Italy and Spain.
The Euro zone countries have been seeing very marginal growth and due to the huge pileup of the debt on them, their conditions are getting worse.
According to the Hedge Fund Manager at Hampstead Capital, Lex Van Dam, "The global markets are now taking a breather and there is an anticipation of large rebalancing outflows out of equities into fixed income as the relative performance of equities has been very significant this quarter".
German Government bund futures saw a respite this week as the assets of investors went up 150 ticks this week. There is a lot of optimism going around about the US economy, which has made weak growth in the euro zone a bit effectual. Spain has on the other hand faced a lot of criticism because of falling investments for marginal debt after it ripped up agreed deficit targets.