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

ChainCatcher news, according to Jinshi Data reports, Mansoor Mohi-uddin, chief economist of the Bank of Singapore, stated in a research report that the downgrade of the U.S. credit rating last Friday has widespread implications for its economic outlook. First, the deteriorating fiscal situation in the U.S. reinforces our view that long-term U.S. Treasury yields will rise over time. The bank continues to predict that the 10-year U.S. Treasury yield will reach 5.00% in the next 12 months. Second, the threat to the safe-haven status of U.S. Treasuries highlights the bank's belief that the dollar has already peaked. Finally, the massive U.S. deficit and inflation may force the Federal Reserve to maintain higher interest rates for a longer period.