Calm surface, turmoil below

Treasury bonds staged a huge rally yesterday. It seems that 4% on the 10-yr. brings buyers out of the woodwork. I think I'll stick with the bonds a little bit more.

Greece is in serious trouble. Their latest offering only brought in E390 mil. vs. a targeted E1 billion. Yields have surged to 8%. And Greece still insists it doesn't need a bailout. This coming from a country that has spent half its history in default, according to David Rosenberg. So is no bailout and default good for the Euro (as Russ Winter thinks) or bad, as the market currently thinks?

And regarding China. What does a currency revaluation mean? Commodity prices up or down? Down in Rmb or up in U.S. $? Depends on the amount of revaluation. One thing that seems pretty clear to me is that Chinese stock market prices will fall. So I've got to watch FXI and especially watch the options. I like the idea of playing the options because I'm not sure of the timing. Chanos says end of this year, early next year for the crash.