Dollar momentarily constructive as U.S Govt. Yields rise massively ? structural worries remain and GM prepares for bankruptcy filing.
The news monopolizing the financial newswires yesterday was the massive jump and subsequent selloff in U.S Government yields. US10Y jumped 20bps and closed above the important resistance of 3.70%. This could potentially be disastrous for the mortgage market, which is widely seen to be the major to an economic recovery in the U.S; furthermore high govt. yields stunt domestic growth and weighs on…