President Donald Trump’s intensifying battle with China and other major trading partners is morphing into a global currency war. It will be hard for him to win both.
Escalating trade tensions have supported the dollar this year. They’re now fueling a mammoth bond rally as investors seek out the safest assets, demanding the greenback to buy Treasuries. Foreign ownership of American government notes has swelled to record highs, pushing yields to the lowest since 2016 on 10-year notes, a benchmark for global borrowing.
