Deutsche Bank says US dollar that is the biggest loser in investors' fiscal uprising, says Deutsche Bank

(Bloomberg)-The long-term US treasury returns are increasing as investors revolt against government spending, but Tim Baker of Deutsche Bank warns that the US dollar could eventually pay the greater price if fiscal concern continues. The yields of thirty-year-old Treasury have risen by more than 5% this week since 2023 to their highest level, after Republicans overtook, and eventually passed Thursday morning, President Donald Trump’s tax setup of the signature legislation expected to contribute to the national debt burden to the national debt tax. In the midst of the wry on Capital Hill, a Deutsche index that measures US fiscal policy uncertainty has reached a record high. “With the government that is little likely to shrink these deficits, the yields of the mortgage have marched higher,” Deutsche -Makro strategist wrote Baker in a note. “These returns may seem tempting to a domestic investor who is less uncomfortable with fiscal risks than foreigners.” Although Thursday brought a break in the boom, the 30-year rate still pushed as high as 5.15%, extending this month’s steady climb. The dollar has already downgraded the biggest response to the early response of the market to Moody’s ratings last Friday. A Bloomberg meter of the US currency is now almost 1% lower than the week and so far more than 7% so far this year-the worst annual start on record in data that is back to 2005. ‘ Treasuries can get some ultimate support as the houses of shares pull away, but foreigners ‘retreat will still play dollar negative,’ Baker said. Options traders are already busy with further dollar weakness. Sentiment revealed by contracts this week, as measured by a total meter from the Greenback in the next month, soured to its most clumsy in five years, as the Covid-19 pandemic in March 2020 hampered global markets. “Even if the domestic support for treasuries at some point, it still has the dollar lower than foreigners of the norm of normal buying,” Bakker said. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP