Singapore Bank: US Treasury Bond Safe Haven Status in Jeopardy, Highlighting US Dollar Peaking View

BlockBeats News, May 19th, Mansoor Mohi-uddin, Chief Economist at the Bank of Singapore, stated in a research report that the U.S. credit rating downgrade last Friday had a widespread impact on its economic outlook.

First, the deteriorating fiscal condition of the United States has reinforced their view that the long-term U.S. Treasury yields will rise over time. The bank continues to predict that in the next 12 months, the 10-year U.S. Treasury yield will reach 5.00%.

Second, the threat to the U.S. Treasury's safe haven status has highlighted the bank's view that the U.S. dollar has already peaked.

Finally, the massive U.S. deficit and inflation may force the Federal Reserve to maintain interest rates at a higher level for a longer period of time. (FX Street)