Market sentiment continues to improve again as the key risk events that drove the safe haven flow at the end of last week continues to unwind, which has helped the dollar and equities higher. With the destruction of Hurricane Irma not as bad as feared and Kim Jong Un opting simply for a party that did not go off with a bang, there has been a significant retracement of some of the huge declines on Treasury yields. The 2s/10s spread is widening out again and this has helped a rebound on the US dollar with key markets such as EUR/USD and Dollar/Yen unwinding recent decisive moves. The next question is whether this will prove to be simply a knee-jerk reaction higher for the continuation of the embattled dollar or the beginning of something more sustainable in recovery.