A mix of clouds and sunshine with gusty winds developing this afternoon. High 83F. Winds SW at 20 to 30 mph. Winds could occasionally gust over 40 mph..
Tonight
Cloudy early with some clearing expected late. Low 49F. Winds W at 15 to 25 mph. Winds could occasionally gust over 40 mph.
An unusual anomaly arose during the latest banking crisis when a long-standing historical relationship broke apart. When bank stocks skidded in response to the problems that first appeared at Silicon Valley Bank, the 2-year Treasury yield fell dramatically, indicating a rush for the safety of Treasury assets. What was unusual this time was the weakness in the USD. The greenback has rallied during past financial scares and crises as investors piled into the safety of the USD and Treasury paper. This time, Treasuries did reflect a flight to safety, but not the USD. As the USD has been inversely correlated to the S&P 500, and the dollar can’t advance even with the macro tailwind of a banking crisis, what does this mean for asset returns?