Yesterday started to look scary in global markets. Oil tanker traffic through the Straits of Hormuz has essentially ground to a halt and - for a few hours yesterday morning - oil prices looked like they were about to go vertical. That caused the Dollar to spike, especially against emerging markets (EM), which can have all kinds of adverse knock-on effects. When EM currencies come under severe depreciation pressure, EM central banks sell US Treasuries so they have Dollars to sell in the open market to slow the fall in their currencies. That in turn can destabilize the basis trade, which is what happened in March 2020 ... (full story)