Bank of Singapore: The safe-haven status of U.S. Treasuries is precarious, highlighting the view that the dollar has peaked

BlockBeats News, on May 19, the Chief Economist of the Bank of Singapore, Mansoor Mohi-uddin, stated in a research report that the downgrade of the U.S. credit rating last Friday has broad implications for its economic outlook.

First, the worsening fiscal condition of the U.S. reinforces its view that long-term U.S. Treasury yields will rise over time. The bank continues to predict that in the next 12 months, the yield on 10-year U.S. Treasury bonds will reach 5.00%.

Secondly, the threat to the safe-haven status of U.S. Treasury bonds highlights the bank's view that the dollar has peaked.

Finally, the massive deficit and inflation in the U.S. may force the Federal Reserve to maintain high interest rates for a longer period of time. (Jin Shi)