-
US government shutdown hit the dollar despite higher yields
The prospect of a US Government shutdown has hit the prospects of a dollar rally in the past couple of days as the greenback falls away again. However this comes as US Treasury yields continue to rise, and interestingly the US yield curve is steepening. The US 10 year Treasury yield has risen decisively above 2.60% and is now on the brink of a major technical breakout. The high of 2.64% in December 2016 was at the height of the initial bond market sell-off from Trump’s election victory. However a breakout would mark not only a high dating back to September 2014, but also confirm that a multi-decade downtrend on the ... (full story)