DB's Reid: " A dollar fiscal frown is the best way to picture things. At one extreme on the left is a fiscal stance that is too easy. This leads to a combined drop in US bonds and the dollar. The persistence of this pattern would be a clear signal the market is losing its appetite to fund America's deficits and rising financial stability risks. At the other extreme, on the right of the frown is a fiscal stance that tightens too quickly, closing the deficit sharply but forcing the US into a recession and a deep Fed easing cycle. In this more conventional world, the dollar drops and bond yields rally at the same time."