The spread of 2-year European vs. 2-year US rates has stretched back to the highest levels since before the crisis as safe-haven seeking at the short end of the European curve seems to have faded and as the market prices out the chance of the ECB ever easing rates, just as the Fed appears ready to move soon with further debt monetization. The German 2-year now yields 75 basis points vs. 42 basis points at the lows from May. US 2-year rates, in the meantime, have plunged to fresh all-time lows. While it is impressive to note the widening of the spread here, there are limits to how much wider it can go, as the ECB is forever on hold and the US can possibly drive rates a bit lower, but not more than another 20 bps or so at the theoretical limits unless the Fed is willing to consider negative interest rates. Borrow money now and pay less back later - a great way to get house prices to rise!