It's a Regime-Shift for US Real Yields: 3-Minutes MLIV

Summary

Mark Cudmore argues that new Fed Chairman Kevin Warsh restores the Fed’s inflation-fighting credibility, triggering a regime shift toward higher US real yields. This is bullish for the dollar and bearish for precious metals like gold and silver. He also flags the UK by-election result as a potential driver for UK assets.

• Fed credibility restored under Warsh, shifting US real yields higher
• Higher real yields and hawkish stance very bullish for the dollar
• Precious metals (gold, silver) seen with more downside on stronger dollar and higher yields
• UK assets in focus after Burnham by-election victory
• Liquidity thin with US holiday, amplifying market moves
• Geopolitical concerns over Iran talks and Lebanon deal add cautious tone