Sunday, April 24, 2011

The Fixed Income Picture supports a Dollar Rally

Long-therm Treasury could rise from here. The daily EXH normally goes all the way up rather then flip at a level of 0.75. This means US$ buying !!If the daily EXH rises then the weekly will als move upwards.
The High Yield market looks heated with an historic reading on the weekly EXH and a neg. Div on the daily EXH. This hints at some risk for the RISK ASSET classes.
Make no mistake, the charts above allude to DEFLATION with lower yields and falling Asset Markets.

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