We expect bond yield divergence to favour the USD

We expect bond yield divergence to favour the USD

We expect higher government bond yields in the US than in other developed markets (DMs) to push the US dollar up, as has generally been the case since the Global Financial Crisis. Admittedly, the relationship between the government bond yield gap and the greenback hasn’t always held. When appetite for risk is weak, safe-haven demand pushes the dollar higher and…
Jonathan Petersen Markets Economist
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Capital Daily

Making sense of the mixed signals behind US dollar strength

The US dollar has strengthened against most currencies, despite the fall in the yield of 10-year US Treasuries. We think that the greenback will appreciate further, aided by a rise in long-term Treasury yields.

1 July 2021

FX Markets Weekly Wrap

US ISM and payrolls could add fuel to the dollar rally

The US dollar seems set to end the week slightly weaker, but has held much of its gains following last Wednesday’s FOMC announcement. With increasing focus on the prospects for monetary tightening globally, next week’s employment and survey data in the US may push the dollar higher, if they back up the Fed’s optimistic assessment of the economic outlook.

25 June 2021

FX Markets Update

We think that the yen will weaken further before long

We expect the yen will continue to depreciate against the US dollar this year as 10-year US Treasury yields resume their rise.

18 June 2021
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