Citi Says Capping US 30-Year Treasury Yield Below 5.30% May Increase Pressure on Dollar

The dollar could come under greater downward pressure if the yield on the US 30-year Treasury is capped below 5.30%, according to Citi.

Walter Bloomberg reported on August 28 that Citi strategist Dirk Willer said keeping the 30-year Treasury yield from rising above 5.30% could intensify weakness in the US currency.

Citi unwound its underweight position in US Treasuries after US Treasury Secretary Scott Bessent announced a bond buyback plan. It also maintained its long-gold and short-dollar positions.

Willer added that asset-swap spreads, which typically show concerns about US fiscal health, have so far remained relatively stable.