It has always been my assumption that international moneyflows accumulate in the currency with the greatest chance of relative rising rates in the near future. The reasoning is obvious. And, it has worked everytime for as long as I can remember. The FED has been ratcheting rates up on a consistent basis for over two years now. Around the beginning of the year, the Dollar started to advance when the pendulum swung in favor of the Dollar, and international rates became less appealing. Bonds, on the other hand, reached a peak (low in long term rates) around mid-year. This probably coiincides with a peak in international commerce. Afterall, we are the world's greatest importer. And our trade partners have to park their money somewhere, near term. Remember Greenspans conundrum? Well, we still appear to be a few months off, but I feel it's all about to change. Posting two charts: Bonds and then the Dollar. Will update time to time and see what unfolds.