🧵The US dollar is facing major pressure. It's dropped about 8% since the start of 2025 and is currently underperforming every other G10 currency.

It ranks as one of the worst-performing asset classes of the year.

So, why is this happening now? Let’s break it down👇 2/ For years, the dollar was the ultimate safe haven for investors worldwide.

But now, sources tell me that’s changing — investors are starting to treat the dollar more like a riskier emerging market currency...

Let's talk about what's going on in Treasurys 🧵

10-year is at 4.53% (66 bps swing from Monday's low), 30-year now at 4.93% (highest since January)

Experts have told me there are likely multiple catalysts happening at the same time.

Let's break them down: 1. 'Basis trade' unwind

This is a highly leveraged trading strategy most often used by hedge funds.

The idea is to buy the bonds at a cheaper price & "short" the more expensive futures contract with the hope the two prices will eventually merge