Why market participants are reacting so badly to the 20-year treasury auction
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Market participants across asset classes were responding "very negatively" to a poor Treasury auction on Wednesday, said Deutsche Bank researcher George Saravelos, who broke down
some of his observations. He said the most troubling part of the market's reaction is that the dollar is weakening. This is "a clear signal of a foreign buyer's strike on U.S.
assets and the associated U.S. fiscal risks we have been warning for some time. At the core of the problem is that foreign investors are simply no longer willing to finance U.S. twin
deficits at current level of prices." Separately, Saravelos said, it is hard for U.S. stocks to stay resilient in this environment.