A note from MS, arguing that increased issuance of lower yielding US bonds will be less attractive and a negative for the US dollar
- lower yield amidst solid size of issuance of USTs (and lower corporate credit issuance and of mortgage-backed securities)
- higher US budget deficit
- "This matters because a rising share of Treasuries in broader fixed income indices may lower their relative returns, rendering U.S. fixed income less attractive"
Sets up a better case for USD weakness
