Yields and US Dollar

This week Real Vision’s Roger Hirst uses Refinitiv’s best-in-class data to look at bond yields and the US dollar. Rising yields are being interpreted as a positive repricing of growth, but this close to the beginning of a new year, they could be nothing more than rebalancing trades. A tighter Fed is also expected to boost the US dollar and yields, but price action over the last 18 months suggests that the opposite may be the outcome. And last year’s Q1 flows were themselves a head fake caused by asset allocation trades. Could this year’s early moves also be a false signal?