Market conditions remain steady following a modestly weak 10-year Treasury auction, with rates consolidating and equities advancing. However, strengthening in the U.S. dollar, elevated gold volatility, and signs of tightening liquidity suggest that risk assets may face pressure if dollar funding strains increase. More in the daily video below the write-up.
Daily Write-up
The dollar continues to move higher, and I think that is somewhat important because there is so much talk of the dollar debasement trade. If there is a dollar debasement trade, then there is definitely a euro and yen debasement trade, as well as a general fiat debasement trade occurring.