“US ten-year rates are destined to rise, dragging the EU ones”

Since the Federal Reserve shuffled the cards, announcing in mid-June that there will be two rate hikes by 2023, displaced investors are trying to absorb this news. The dollar has strengthened on a global scale (dollar index) by about 2% but long-term US rates have fallen instead of rising. According to Mark Conrad, Algebris portfolio manager, this is only an apparent paradox.

«Previously, the market was strongly convinced that the Fed would leave …