As investors flee U.S. Treasuries and 10-year rates rise, we're seeing this morning breakout weakness in the U.S. dollar vs. the euro (top chart) and continued strength in gold (middle chart) and oil (bottom chart). Markets appear to be focused on the debt levels accumulating in the U.S., and they are expressing their lack of confidence in the greenback. It's difficult to imagine that rising rates and a shrinking dollar create an environment favorable for the long-term holding of U.S. equities.
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