US Dollar's Value Tumbles as Bond Market Sell-Off Sparks Confidence Crisis

The US dollar's value has been impacted by the sell-off in the bond market, which sent 10-year yields to new highs of close to 5.00%. This has led Roger J Kerr to see the US bond market sell-off as a vote of no-confidence in the Trump regime.

The relationship between US long-term Treasury Bond interest rates and the value of the USD has broken down, with the USD failing to follow the increase in yields higher. This is because foreign investors are ditching out of US Treasury Bonds due to concerns over the Trump regime's ability to rein-in the US Government budget deficit and control increasing debt levels.

The selling of bonds by offshore investors has pushed up yields, causing them to sell the USD as they repatriate funds. This is a significant development, as it indicates that foreign investors are turning their backs on the Trump regime's economic policies.