Loading ...Authored by Simon White, Bloomberg macro strategist,
Debt-ceiling worries are driving the dollar up for now, but real yields, the fiscal deficit and structural overvaluation favor the medium-term downtrend remaining intact.
All of the recent move higher in nominal yields (discussed here) has been driven by real yields. Inflation, erroneously, is seen as yesterday’s problem, with breakevens remaining near the lower end of their two-year range.
https://www.zerohedge.com/markets/fade-rally-dollars-destiny-lower