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Fortunes Still Tied To US Yields, PHP A Stronger Underperformer In May

ASIA FX

As May draws to a close, the Bloomberg Asia Dollar index looks set to finish marginally above end April levels. The first chart below plots this index against the US real 10yr yield, which is inverted on the chart. The two series, for the most part, continue to exhibit a strong inverse correlation. Highs for Asia FX this month generally coincided with the trough in US real yields.


Fig 1: Bloomberg Asia Dollar Index Versus US Real 10yrYield (Inverted)

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As May draws to a close, the Bloomberg Asia Dollar index looks set to finish marginally above end April levels. The first chart below plots this index against the US real 10yr yield, which is inverted on the chart. The two series, for the most part, continue to exhibit a strong inverse correlation. Highs for Asia FX this month generally coincided with the trough in US real yields.


Fig 1: Bloomberg Asia Dollar Index Versus US Real 10yrYield (Inverted)

Keep reading...Show less