The global bond selloff continues as inflation concerns bring forward expectations for central-bank tightening. Although higher US rates have improved the dollar’s yield advantage, the currency has failed to benefit. That decoupling may reflect concern about weaker foreign demand for Treasuries, particularly after US Treasury efforts to contain long-end yields and reports that Japan’s GPIF and Norway’s sovereign wealth fund could reduce UST holdings. This echoes the earlier “Sell America” trade, where rising Treasury yields coincided with dollar weakness.At the same time, foreign fixed-income flows have become less important for the dollar than in the past. Unhedged inflows into US equities helped support the currency even as Treasury exposure fell, and foreign holdings are now much more concentrated in US stocks and credit than in government bonds. That leaves the strength of the US equity market as an important long-term dollar driver.Near term, the focus is back on central banks. August CPI and next week’s FOMC meeting could support the dollar if the Fed hikes or delivers a hawkish hold. For the yen to extend its rally, the BoJ would likely need a unanimous rate hike and a hawkish press conference, while the BoE is expected to stay on hold as the UK faces stagflationary pressure.