Bank of America flags Australian bonds as big winners in post-dollar world
The post Bank of America flags Australian bonds as big winners in post-dollar world appeared on BitcoinEthereumNews.com. Bank of America is pointing global investors toward Australia, predicting that its sovereign bonds are poised to outperform in what it calls a “post-dollar” world. In a research note released Wednesday, FX strategists Oliver Levingston, Adarsh Sinha, and Janice Xue highlighted Australia’s fixed-income market as a likely hotspot for capital inflows amid ongoing global de-dollarization. “De-dollarization was a major theme on our trip to the United States and Canada, and we continue to highlight the significant impact small shifts in global fund managers’ asset allocations could have on the demand profile for AUD fixed income.” The note makes the case that Australia’s relatively small bond market could experience dramatic price swings if global investors keep fleeing U.S. dollar-denominated assets. Investors have been looking for more sound and undervalued alternatives as the greenback has lost its previously unassailable haven status, particularly after almost a year of political and economic tumult under President Donald Trump. Investors dump dollar amid Trump-era volatility The report directly attributes the trend to increasing global discomfort with U.S. financial stewardship. The re-emergence of Donald Trump on the political scene, along with a fresh wave of belligerent trade policies and what the bank calls “economic nationalism,” has only hastened investor diversification. Trump’s declaration of sweeping tariffs earlier this year, which markets dubbed “Liberation Day,” set off a global market selloff. Investors stampeded to pull out of U.S. markets, anxious about protracted uncertainty and trade isolationism. This “Sell America” movement was marked by heavy selling of Wall Street stocks, U.S. Treasurys, and even the dollar itself. The U.S. dollar index (DXY), which measures the greenback against a basket of leading currencies, has slid by about 9% year-to-date in 2025, its most significant decline in over 10 years. Investor conviction in the dollar is non-existent; as Bank of America’s June…
The post Bank of America flags Australian bonds as big winners in post-dollar world appeared on BitcoinEthereumNews.com.
Bank of America is pointing global investors toward Australia, predicting that its sovereign bonds are poised to outperform in what it calls a “post-dollar” world. In a research note released Wednesday, FX strategists Oliver Levingston, Adarsh Sinha, and Janice Xue highlighted Australia’s fixed-income market as a likely hotspot for capital inflows amid ongoing global de-dollarization. “De-dollarization was a major theme on our trip to the United States and Canada, and we continue to highlight the significant impact small shifts in global fund managers’ asset allocations could have on the demand profile for AUD fixed income.” The note makes the case that Australia’s relatively small bond market could experience dramatic price swings if global investors keep fleeing U.S. dollar-denominated assets. Investors have been looking for more sound and undervalued alternatives as the greenback has lost its previously unassailable haven status, particularly after almost a year of political and economic tumult under President Donald Trump. Investors dump dollar amid Trump-era volatility The report directly attributes the trend to increasing global discomfort with U.S. financial stewardship. The re-emergence of Donald Trump on the political scene, along with a fresh wave of belligerent trade policies and what the bank calls “economic nationalism,” has only hastened investor diversification. Trump’s declaration of sweeping tariffs earlier this year, which markets dubbed “Liberation Day,” set off a global market selloff. Investors stampeded to pull out of U.S. markets, anxious about protracted uncertainty and trade isolationism. This “Sell America” movement was marked by heavy selling of Wall Street stocks, U.S. Treasurys, and even the dollar itself. The U.S. dollar index (DXY), which measures the greenback against a basket of leading currencies, has slid by about 9% year-to-date in 2025, its most significant decline in over 10 years. Investor conviction in the dollar is non-existent; as Bank of America’s June…
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