The US dollar decline
Five killer charts
Good morning – here are your five chart for the day. Each one comes snap stat, quick take and why it matters. Skim, steal, forward (but always credit!!).
CHART 1 • Dollar and Treasury yields part company
Since early April, US ten-year yields have risen from 4.16% to 4.42%, yet the dollar has slid nearly 5% against major peers. The usual positive correlation has flipped.
Why? Investors now fear higher yields reflect fiscal risk, not red-hot growth. Trump’s “big, beautiful” tax bill and tariff fights stoke deficit anxiety. Credit default swaps on US debt trade near Italian levels – unprecedented for the world’s reserve issuer.
Add public attacks on the US Federal Reserve and the dollar’s institutional edge looks less certain. Foreign holders are hedging currency exposure, pushing greenback demand down even as Treasury supply floods the market.
Snap stat – Dollar index down 4.7% while the 10-year yield rose to 4.42%
Quick take – Correlation hits a three-year low as policy credibility frays
Why it matters – A weaker greenback removes a key hedge just as volatility returns
Steal-this-caption – “Yields up, dollar down – the market’s safety valve has snapped.” #FiveChartsDaily
Source: Financial Times
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