Willful manipulation in the 20th century to 1945 in Germany has resulted in a still stunted public financing small company market. Even as Libor rates return to normal and junk bond yields drop, over 2010-11 a return of 10 Year U.S. Treasury Note yields back into 4-5% trading ranges would reflect normalized spreads over imputed targets of inflation of 2%. Markets are likely to be highly sensitive to quality (strong balance sheets, strong operations and unique products/services). Equity market recovery now needs being benchmarked off distortion free long government bond yields developing.
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