Is the US dollar really that strong? Do you see the hidden concerns behind the surge in US Treasury yields?
U.S. Treasury Secretary Bessent told Congress that the dollar, as a reserve currency, remains strong thanks to the stability of regulatory and trade policies. However, the 10-year U.S. Treasury yield surged to 5.041% on the same day, the highest level since 2007.
Market expectations for the Fed to raise rates have already approached 95%, but factors such as oil prices, inflation, and fiscal deficits are still pushing up the risk premium. The U.S. Treasury Department is also expanding its long-term debt repo operations, with a single largest scale of up to $6 billion. This is only one way to improve liquidity and cannot fundamentally address the deficit problem. What is worth paying attention to is that the U.S. fiscal deficit has already reached $1.97 trillion.
In this situation, how long can the dollar’s strength last? What do you think the Fed’s next move will be?
#宏观经济 #Federal Reserve
U.S. Treasury Secretary Bessent told Congress that the dollar, as a reserve currency, remains strong thanks to the stability of regulatory and trade policies. However, the 10-year U.S. Treasury yield surged to 5.041% on the same day, the highest level since 2007.
Market expectations for the Fed to raise rates have already approached 95%, but factors such as oil prices, inflation, and fiscal deficits are still pushing up the risk premium. The U.S. Treasury Department is also expanding its long-term debt repo operations, with a single largest scale of up to $6 billion. This is only one way to improve liquidity and cannot fundamentally address the deficit problem. What is worth paying attention to is that the U.S. fiscal deficit has already reached $1.97 trillion.
In this situation, how long can the dollar’s strength last? What do you think the Fed’s next move will be?
#宏观经济 #Federal Reserve
