chart attached: bars US10 yields, green line DXY , blue GOLD .
markets started to treat US assets like an EM country. twin deficit, higher yields lower currency...
I think there is a good risk in being gold short, long dxy and US bonds...
apreciate any comment to help me understand the madness
good luck all!
Not sure who is buying bonds but someone or something is keeping bonds from absolutely crashing.
My thoughts are that higher rates will cause equities to suffer - hence the efforts to keep bonds "stable".
Friday there was rumblings from the Fed about possible QE in the event of the "next" crisis that would be in the form of asset purchases (eg. treasuries)
Also there was news about forgiving student debt. Neither of these are positive for the dollar.