We get a chuckle sometimes out of seasonality here in the United States of Amnesia.
Every year around May the long end of the US Treasury yield curve tends to rally, putting the associated bonds into a value funk, with a bottom in July.
And every year the pundits screech about the massacre of the bonds, and urge specs to dump them and seek the safety of stocks, which they are selling as part of the "Sell in May and Go Away" migration.
Wash and rinse. Wax on Wax Off. Wall Street lives on rotation.
At some point in mid-summer the long end is going to be a buy again, but not now. It's peaked and is a sell.
Some think this means a dollar rally. Except that the Dollar does not key to the long end of the curve but rather the short end.
This could be an interesting year. It been fun filled so far.
