One factor helping lift the dollar as the new year gets underway is a tilt toward the supply-side of the economy in Obama’s nearly $800 bln stimulus plan. Tax cuts in excess of $300 bln are said to be part of the package, according to the Journal.
US yields have been firming in recent sessions, another supportive factor for the greenback. 10-year Treasuries are up to 2.50%, nearly 45 bp higher than the lows made just before Christmas. Barron’s is flagging a Treasury bubble, a subject I’ve written about at length, helping boost yields today.
