-
The US dollar continues to dominate
2018 started with investors asking the same question as every other post-crisis year: Is this the year rates finally rise? In fact, the answer has been yes, although the backup in rates has been modest. U.S. 10-year yields surged in January but have been range bound ever since. Instead, as I wrote back in early July, the dominant return driver has been the dollar. Whether or not the dollar remains strong is likely to be as, if not more, important than the direction of rates. Two months ago, I suggested that you could explain much of the first half’s performance by referencing the dollar. The first two months of the ... (full story)