Friday, April 17, 2009

Tracking Growth/Recovery Themes Across Markets

As the U.S. dollar has rallied against the euro (bottom chart), we see firmness in 10-year Treasury rates (second chart from bottom), buying of high yield bonds (middle chart), buying of municipal bonds (second chart from top), and buying of stocks (top chart).

It's a nice example of how intermarket themes dominate markets in a global economy. This week's theme has been one of anticipated economic recovery and growth.