USD poised for a bear-market correction over coming weeks - TDS

In its global daily report, the analysts at TDS offer their outlook on the US dollar and Treasury yields over the coming weeks.

Key Quotes:

“While we think that there is nothing magical about a 3% 10y Treasury, it should be a headwind for equities given that real rates continue to head higher. Focus today will be on the reception to the 5y auction.

We remain medium-term USD bears but the stars are aligning for a bear-market correction over the coming weeks. There are many factors at play but mostly we suspect the rally reflects the reduction in the Trump risk premium alongside the cooling of the global growth narrative outside the US. Central banks have begun to push back as well.”