US 10 year yields: everyone and his wife is talking about 3% cracking.

What’s more of a story though is how DXY is reacting – this started last week and today shows no sign of abating. Listen up at the back because, and you’d better be ready for this……DXY is following yields. It only took a year for the divergence to hit a bump, and erm be sort of….. converging with 10 year. Where’s that bottle of Krug when you need it ?

Not so fast.

Take a look at EURUSD still defying short term spreads. 2 yr swaps, German-US 10 yr and 2 year implied FX forward carry.  Still – I think the USD party may very well start soon.

Greg Gibbs has a lovely run down on what’s what with some proper good old fashioned healthy common sense.  His reports are mustard, with onions.

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Patrick Reid

Swapped the TV screens for the trading screens.
Philosophy: "Define your risk, only then can you ignore it"

Read how Patrick got into trading here
Patrick Reid

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