Citi says US Treasury yield caps could weigh on dollar
Citigroup strategist Dirk Willer warns that aggressive efforts by the U.S. Treasury to cap long-end borrowing costs could weigh on the dollar. Investors may seek alternative assets for protection, prompting Citi to stay short the dollar while adding gold.
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Aggressive efforts by the United States Treasury to cap long-end borrowing costs below 5.30% could ultimately weigh on the dollar. That is according to Citigroups global head of macro and asset allocation strategy Dirk Willer, speaking on Thursday. Investors may look beyond Treasuries for assets that offer protection against fiscal deterioration.
