Watching the bonds

If you’ve been watching the bonds, you likely know they have been in a tight embrace with the US stock market—stocks up in price, bond down in price (up in yield), and vice versa. But to the chagrin of inflationist, bond prices have held up well despite ongoing supply, as demand for said bonds, especially from the US itself and continued support from our friend China.

If you know the bond-stock correlation has been tight, you also probably know the dollar-stock correlation has been tight as well. It’s all pretty clear in the chart below, I think…