US dollar - US Treasuries Divergence

The US dollar correlates positively to US Treasuries.

Market participants needs US dollar when buying US Treasuries as investments or as collateral.

Now we see a pretty sharp diverence and break of that correlation.

One would anticiapte a return to mean of this relationship.

My base-case is that the dollar will follow bonds and get bid up.

In short, my reasoning is as follows:

If liquidity continues to be tight, as low interest rates and central banks going crazy are signaling, the dollar will catch a bid as it's still the world reserve currency.

Regardless of my bias: when macro correlations diverge, its time to pay attention.