Tough to square stocks with bonds
Divergence remains the theme of the month with US stocks remaining near record highs and Treasury yields creeping towards all time lows.
One way to square the thinking is the ongoing change in Fed policy towards average inflation targeting. That will ensure rates stay lower for longer.
At the same time, it's tough to get away from the idea that the bond market is pricing in coronavirus and stocks are ignoring it with FX somewhere in the middle.
