A provocative chart demonstrating a sharp negative correlation between 10-year Treasuries and the dollar appears to suggest the U.S. currency may be losing its safe-haven appeal.
The chart by currency fund manager Axel Merk of Merk Investments showed the 1-year rolling correlation between the U.S. dollar index and 10-year Treasury notes over the past 18 years, revealing a steep plunge from the summer of 2012 until today.
That drop-off means that while U.S. Treasuries are currently viewed as a safe haven, attracting investment, the U.S. dollar is not simultaneously rising, but instead has fallen against a basket of currencies.
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