Last night’s market action saw risk roar back to life. Stocks fell the better part of 2% in the US and the Australian dollar fell into the high 92s:
The US dollar broke out of a one year trading range:
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Gold was dumped 1% but US bonds were flat at the long end but were bid at the short end. If you’re confused then you’re in good company. If this was another taper tantrum then bonds would be selling.