Weekly Chart US 2 year yield vs. German 2 year yield(schatz) .We know the ECB meets Thursday,and a decent amount of new Stimulus is being priced into European assets.At a minimum a decrease of. 1% in deposit rate,an Extension of QE program beyond Sept 2016 and an increase in the amount of QE. With the FED almost certain to raise rates in December it is easy to see why this spread has moved out to the widest levels in 10 years.
With European Markets pricing in this amount of easing,I think the buy the rumor sell the news trade will be in play come Thursday unless Draghi really pulls a rabbit out of his Hat.