US dollar climbs to the highs of the day as yields climb

The bond market is the tail that’s wagging the FX dog at the moment.

The latest leg higher in the US dollar comes after a rebound in yields after an earlier dip. US 10s are now fractionally higher on the day at 4.26% from a low of 4.21% and it’s similar across the curve.

The stock market isn’t doing much of anything at the moment and there hasn’t been anything notable on the fundamental side in the US. I fear this dollar rally hints at a weak close for equities.