Watch Me TRADE's video: Daily Day-Trading 5 29 2013

One notable side effect of the selloff in U.S. Treasurys this month has been a widening in the spread between the benchmark U.S. debt and its European safehaven counterpart, the German bund. The 10-year Treasury note 10_YEAR +0.90% yield has climbed 45 basis points since the beginning of May, including a 16 basis point rise on Tuesday, to 2.12% on Wednesday. The 10-year German bund BX:TMBMKDE-10Y , on the other hand, has climbed about 34 basis points during the same time-frame to 1.498%, according to Tradeweb. That has caused the difference between them to increase to 62 basis points Wednesday. And that's down slightly from Tuesday's close of 67 basis points, the highest since 2010. The Treasury-bund spread is widely watched by government debt market participants because it helps indicate the relative value of buying one safehaven bond over the other. But it's also an indication of the various outlooks for economic growth. An improving outlook for economic growth in the U.S. has led investors to anticipate a tapering of the Federal Reserve's bond purchase program, thereby driving yields higher while the euro zone has remained mired in recession. The Wall Street Journal reports: "Market action underscores the contrast in outlook for monetary policy in the U.S. and the euro zone, where feeble economic activity has bolstered hopes of further rate cuts by the European Central Bank, and even the distant prospect of negative deposit rates, a situation in which investors would essentially be paying the bank to hold their cash." That's not to say the euro zone is failing while the U.S. is thriving. After all, Spanish and Italian yields have fallen recently, which serves as one signal of a more positive euro zone outlook, said Jim Kochan, chief fixed-income strategist at Wells Fargo Asset Management, in an interview. But markets are beginning to focus more on local economic improvement than the monetary policies of central banks. That means spreads of safe haven debt around the globe may continue to drift apart as growth in different regions of the world moves at its own pace. Here's The Wall Street Journal again: "Differences, or spreads, between the yields on German bunds and their U.S. and U.K. peers are widening already. That trend could well continue. Failure by the BOJ to calm the Japanese market could throw further discord into the mix. Having listened to the orchestra for so long, investors will need to home in on each player's individual notes to avoid miscues.