Analyst: Overseas investors seem to be inclined to reduce their allocation to the US dollar.

BlueBay's chief investment officer, Mark Dowding, pointed out in a report that 30-year US Treasury bonds are finding buying support around the 5.0% yield level. Dowding said, "However, we are concerned that as US debt continues to grow, most overseas investors seem to be reducing their exposure to US assets and the US dollar." He stated that as debt levels increase, new supply will rely on domestic US investors to absorb it. Dowding also added that the US Treasury yield curve remains relatively flat and may see a steeper trend in the coming weeks.