In this Week of International Issues we discuss the rising yields of US Treasury. Until now the Us Treasury yields were very low historically due to the fear that double dip is coming & people were buying treasuries for hedging or as safe heaven. But we should understand that Us treasuries were low also because Dollar is the only Reserve currency of the world. TrendCalls Team has maintained that Dollar is on doomsday scenario & their is dynamic shift going on in currency markets world over.
The process of federal banks world over to hedge or to protect their excessive Dollar holdings, due to which they are making shift to newer currencies which is also pushing the yields higher in US Treasuries. This shift may not happen in one day, it will take its own course & the process will be relatively slow due to its political reasons. But however this story plays out, it will play a huge role in all the markets of the world.
Views Given By TrendCalls Team
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