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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (158041)	6/20/2021 8:38:45 PM
From: GoodGord	Read Replies (1) \| Respond to of 220890

Could money be flowing to the shortest duration, which is the dollar itself, in anticipation of the short end ramping up? I'm so confused.<g>

To: GROUND ZERO™ who wrote (158041)	6/22/2021 11:27:02 AM
From: Hawkmoon	1 Recommendation Recommended By GROUND ZERO™ Read Replies (1) \| Respond to of 220890

But do interest rates actually have to go up for a stronger USD? Assuming the (global and domestic) markets are topping, when they sell those assets, they will convert into USDs, creating a demand for those dollars. But I also believe China may be an issue here with regard to the DXY. The way they price the Yuan is completely arbitrary and set by political policy it appears. And they may be feeling that they've let the Yuan rise too high and it's impacting their economic competitiveness.. (just a hunch).. Whatever the case may be, the USD and Bonds are heavily shorted, banks are flush with excessive amounts of deposited cash (liabilities), forcing them into ever greater amounts of overnight reverse repos with the Fed to obtain Bonds (collateral assets), and if we see a equity market crash, that margin debt is going to come unwound making bonds and the USD even more attractive.. Other thoughts? Hawk