Back in January, I had predicted that the Fed was on the cusp of postponing its decision to raise rates and that they might, in fact, perhaps as soon as early March, require investors to exercise even greater patience. As we await next week’s inflation data, Janet Yellen’s testimony and US growth figures, it would seem that investors have gradually become “acclimated” to just such a scenario, hence the plunge in yields on 1-year US Treasury bills to 0.19% as of this morning. That means that investors are pricing the Fed’s next rate hike to be as late as next year. For anxious Dollar bulls ahead of next week’s release of US inflation data and the Fed Chief’s testimony, this could serve as a warning sign. Should Dollar investors start to be worried? Continue reading "Bonds, Inflation and the Dollar"