US Dollar Set to Be Biggest Loser in Investors’ Fiscal Revolt, Deutsche Bank Says

Long-term US Treasury yields are rising as investors revolt against ballooning government spending, but Deutsche Bank’s Tim Baker warns that the US dollar may end up paying the bigger price if fiscal concerns persist.

Thirty-year Treasury yields surged over 5% this week to their highest level since 2023, after Republicans clashed over, and finally passed Thursday morning, President Donald Trump’s signature tax bill — legislation expected to add to the national debt burden. Amid the wrangling on Capital Hill, a Deutsche index measuring US fiscal policy uncertainty hit a record high.