Dollar Weakness Undermines Treasuries as Crowded Trade Goes Awry
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Add dollar weakness to the list of forces weighing on U.S. bonds.
Overseas investors poured cash into Treasuries earlier this year, lured by analyst forecasts for a dollar rally and yields above those in Europe and Japan. Fast-forward a few months and bondholders are getting out with the dollar weakening to a four-month low as the outlook for a Federal Reserve interest-rate increase is less certain.