Why the US dollar bull market is not over

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From Citi:

More than 4 months have passed since lift-off and the first rate hike was largely transmitted to most money market rates (with T-bills rates being the occasional exception). But now, the prospect of another hike this year seems to be diminishing with the steady stream of underwhelming economic data, though Citi Economists believe that one more hike is likely this year.

While we await the next hike (whenever that may be), we search for factors which might influence yields higher in the short term markets. But, after examining the technicals in the G10 fixed income sector, this search seems like a fool’s errand.

Citi TSY + debt_0

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.