• From a G4 rates perspective, we believe that central banks should be rebuilding their USD exposuredue to the significant pick-up offered by US rates, as well as the strong USD. 
  
  
• Meanwhile, with around 10% of 2Y-10Y fixed coupon DM domestic sovereign bonds now having negative yields, we examine the case for and against reserve diversification into gold. 
  
  
• Finally, our EM-21 Reserve Monitor shows that Asian central banks have now increased reserves for12 straight months despite the strong USD, suggesting diversification into non-USD G10 currencies is reversing.