Despite elevated volatility across global equities this year, the real place to look for stress might be sovereign bond markets. How does action there tie into currency values? It boils down to relative attractiveness of assets. The Federal Reserve stepping out of the U.S. Treasury market has drastic implications for portfolio allocation and how we think about true diversification. Real Vision’s Mike Coolbaugh explores the concept of interest rate differentials and how using that lens can help explain fluctuations in the foreign exchange market.