We’ve reached peak hysteria over long USTs and DXY. One last push higher in yields and the dollar is likely before they start trending lower. As Joseph Wang notes, the cure for high yields is high  yields. They will slow growth by mid-year, nudging the Fed back toward easing by end of year after bringing CPI back closer to 2%. 

The U.S. economy isn’t near recession—GDP growth remains solid. 

Once UST markets and DXY cool off, risk assets should trend higher. 🔥 🚀 

Full disclosure: EURUSD and $ZN