retched valuations, record low levels of volatility, increased geo-political concerns, uncertainty around US —China trade talks, uncertainty around Fed/ECB actions and, last but not the least, adverse August seasonality is making investors think twice or thrice before putting cash to work. This is despi

l ley minus CPI used, rather than TIPs Figure 5: ECB To Diverge From Fed 0 1 2 3 4 5 6 7 US 2y2y rates Market has been pricing identical Fed/ECB rates path since 2008, divergence coming Euro 2y2y fwd rates 05 06 07 08 09 10 11 12 13 Source: Deutsche Bank Figure 6: Euro-Area Repatriation