The rating agencies are in play again as a late afternoon press release stated that Spain’s DEBT IS NOT AS GOOD AS IT WAS YESTERDAY. Hard to believe it … S&P is really on top of their game. Again, you don’t have to be A WEATHERMAN TO KNOW WHICH WAY THE WIND IS BLOWING. This action, of course, will be the beginning of serial downgrades. As good collateral dwindles, it will put further pressure on the GERMAN BUNDS AND 2-YEAR SCHATZ as REPO TRADERS WILL GRAB THE BEST COLLATERAL. It explains why the SCHATZ TRADED TO A RECORD LOW YIELD OF 8 BASIS POINTS.