Yen Carry Unwind And Shift Into Dollar Carry Extends, US Stocks Decoupling From Dollar Weakness
The dollar pain continues as the dollar drops below the 90 Yen support level.
Surprisingly despite the dollar weakness, there is no capital flow into domestic risky assets (10 Years are well bid). In fact, the bid in HY, the latest risk casualty of bubble psychology, is weakening. Is the carry trade now financing safer/foreign assets? If so, is yield chasing finally over?