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.


Patrick Reid
Latest posts by Patrick Reid (see all)

Pin It on Pinterest