Economics is rife with self-correcting mechanisms, and we give our thoughts on how that dynamic is likely to play out in the relationship between the U.S. budget deficit and longer-term interest rates.
Equity markets have bounced back smartly in Q2. Technical analysis suggests a move higher into early-to-mid-Q3, but investors should watch the U.S. dollar, and more importantly, 30-year and 10-year U.S. Treasury yields.
