Dollar and bonds going in different directions

 

There are usually strong relations between the US bond market and the dollar. The dollar goes up when yields go up. The higher yields attract more foreign investors and are usually a commentary on tighter monetary policy. However, we now have bond yields and the dollar moving in opposite directions. This was an immediate response, but it is telling that there is a desire to no longer hold US bonds and/or the US dollar. Think of this as an abandonment of the safe haven, which is no longer safe, and a movement to a home bias by foreign investors.