Investors positive on the US growth story and stocks. Bond markets expect yields to rise as growth picks up and Fed ends QE programme.
US has rebalanced household debt, dollar and budget deficits. Growth to be driven by pent-up housing & car demand, shale energy, and capex induced by low US costs. Sluggish rest-of-world to provide capital inflows, holding down bond yields, boosting stocks, real estate and, especially, the dollar. (LSR View 11th April 2014)
US stocks strongly up in 2014 to date, long bond yields do not rise in line with market expectations, USD takes off.