Dollar hovers near multi-month lows as debt nerves unnerve investors
Dollar hovers near multi-month lows as debt nerves unnerve investors
Source: Reuters
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DW NOTE
The dollar is falling not because investors are nervous about debt — they've been nervous about debt for years. It's falling because the Fed is holding rates at 3.5% while the 10-year yield has climbed to 4.69% and the 30-year to 5.23%. That's the bond market pricing a risk premium the central bank refuses to acknowledge, and currency traders are drawing the obvious conclusion.