US 10-year yields:

Clarida said the outlook for the US economy is improving and the market sees that as a sign that the 2024 timeline to raise rates is unrealistic.

Clarida coupled it with a comment that tapering bond buyers is ‘well down the road’ but let’s not forget that last month the Fed was talking about buying more bonds so the communication can change quickly.

He’s certainly not leaning against the 20 bps rise in 10-year notes this week. He underscored that by saying he’s not concerned by the levels of Treasury yields.

I think we’ll be finding out if he’s concerned when they hit 1.2% or 1.5%.

With the rise in yields the market is continuing to flirt with buying the US dollar.