Every American should be keeping a close eye on treasury bond yields, since the willingness of foreigners to finance our profligacy is key to our survival. Today at a record-sized auction of treasuries yields went up, meaning buyers were demanding better prices.
Generally yields are back to their November 2008 levels, and this is with the fed printing money to purchase them. Looks like the flight to safety is officially over, time to invest in dollar hedges again. I like the Australian dollar: I like to think it's because of their high yield, exposure to the commodity rebound, and integration with the Chinese economy; but in fact I'm still enamored with Crocodile Dundee.
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