Deutsche Bank: US treasury bonds compete for demand on the same day, yield divergence with the Japanese yen exchange rate highlights US fiscal risks.

Deutsche Bank pointed out that US Treasuries are facing increasingly fierce competition from Japanese government bonds, as the rising yields of Japanese bonds make them more attractive to local investors. George Saravelos, the head of foreign exchange research at the bank, noted that the recent divergence between US yields and the Japanese yen exchange rate is worth noting. He referred to this phenomenon as "the most important market indicator of accelerated US fiscal risk", as it indicates that cautious foreign investors are withdrawing funds from the US Treasury market.