DBS Bank: Rising US bond yields may support a rebound in the US dollar, while the Japanese yen faces a test of financial risk.

On November 14th, Zhang Weiliang, a strategist at the DBS Group Research Department, released an analysis report pointing out that due to the rise in long-term US bond yields and a cooling of expectations for a Fed rate cut, the recent decline in the US dollar may come to an end and a reversal may occur. At the same time, influenced by the uncertainty of Japan's domestic fiscal budget, the volatility of the Japanese yen may rise. The report also stated that due to weak demand for overnight 30-year US Treasury auctions, long-term US bond yields are rising, providing support for the US dollar. In addition, market expectations for a Fed rate cut in December have fallen from 66% last week to the current 50%.