The connection of the dollar treasury product is declining

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The United States is close to government bonds and the dollar in response to the variable policy of the Donald Trump, investors, as soon as the investors are cooled.

The government’s debt expenditures and currency costs in recent years have tended to step with each other with higher products in recent years, generally attractive economy and foreign capital’s revenues.

But because Trump’s “Freedom Day” tariffs He was announced in early April, 10 years of productivity 4.16 percent, 4.42 percent, and 4.7 percent reduced 4.7 percent against a basket of currency. This month, the connection between the two fell to the lowest level in about three years.

“Under normal conditions (higher productivity) is a strong sign of the US economy. This is attractive to the US capital flow.”

“If productivity, because the US debt is more risky, because the uncertainty of financial concerns and politics can weaken the uncertainty,” he said, “said more than the” sample “in developing markets.

The President’s “Big, Beautiful” Tax Project, along with the latest Moody’s lower From the US credit rating, the sustainability of the deficit brought investors to investors and was drawn on bond prices.

Apollo’s Chief Economist Torsten Sløk offered the US government’s credit standard change – the credit protection costs – trades at Greece and Italy.

Trump’s attacks on the Federal Reserve Chair Jay Powell also spoke to the market. President called Powell to the White House this week and said it was the Central Bank make a mistake in cutting interest rates.

“The power of the US dollar is partially institutional: the independence of law, central banking and projected policy. These are the components that create balls such as reserve currency,” said Michael de Pass, global prices for the global assessment head of trade.

“The last three months called on this question,” he said, “We are a great concern of the markets now,” we are now on the institutional reliability of the dollar, “he said.

Disagreement between treasury productivity dollars If the government’s debt costs of the government had very important drivers of the government’s debt costs due to the sample of recent years, monetary policy and economic growth, represent a turn from the pattern of recent years.

The new pattern can increase the risks for investors looking for information from Global FX and the head of the global FX andreas Koenig.

“It changes everything. In the past few years, having a dollar in the portfolio … It was a very well stabilizing factor.” “When a dollar balancer is a factor, you have a stable portfolio. If all of a dollar is all together, it increases the risk.”

Investors wrote in a note on Friday.

“It’s more newly worrying around ….

“The final event of the latest recent events has a problem with higher productivity and low capital prices … Both common portfolio hedges have created a problem,” Goldman analysts.

Poor US currency, in this process, taking a short position for the dollar, the hedge of these investments is partially falling in the process of hedging this investment, taking a short position in the process.

“If there is more political uncertainty, investors will increase hedgehog ratios,” UBS’s Jalinoos said.

“If hedge rates increase in the existing part of the existing dollar assets, you talk about many billion dollars (US dollars).

Goldman analysts, investors, especially in recent months, they proposed to take a position for the vain against the Euro, Yen and Swiss Franc. They added that “these new risks create a strong ground for some separation.”

Additional report by Louis Ashworth