Looks like a rush to the exits
An underrated signal from this crazy episode is in bonds. Given the 10% drop in the stock market, you would have expected a swift move to bonds but that's hardly been the case.
There was a flight-to-quality yesterday but even then, the 10-year yield only fell 9 bps. Today, it's back up 5 bps and at 2.75% it's above where it was a week ago.
To me, that's a huge signal that nothing is going to stop the bond selloff and that yields will rise to 3% and beyond. It's not clear what that means for the dollar in the short-term but at some level (3.5% maybe?) US bonds will begin to look awfully alluring to foreign investors.
