Bonds Fall

Treasury bonds have been in full retreat for the second day in a row. The 10-yr. is down 3% for the second day in a row now, with the yield rising from 3.16% to 3.35% currently.

Why?

Because the dollar is finally strengthening. Obviously, this is the opposite of what we usually see. But with the whole market upside down for the last few months, it's not too surprising. Or maybe it's the other way around. Bonds sell off, yields goes up, and the dollar strengthens.