BofA strategist Hartnett warns that if the US Treasury’s plan to control long-term yields fails, the dollar would come under pressure and short bets on risk assets could rise ahead of November’s midterm elections. He says if Treasury Secretary Bessent cannot push the 30‑year yield below 5%, he expects the dollar to weaken in the weeks ahead and increased shorting of AI mega‑cap equities, private credit and financial stocks. Policy panic intended to repair the fixed‑income market should cap but n

BofA strategist Hartnett warns that if the US Treasury’s plan to control long-term yields fails, the dollar would come under pressure and short bets on risk assets could rise ahead of November’s midterm elections. He says if Treasury Secretary Bessent cannot push the 30‑year yield below 5%, he expects the dollar to weaken in the weeks ahead and increased shorting of AI mega‑cap equities, private credit and financial stocks. Policy panic intended to repair the fixed‑income market should cap but not lower Treasury yields.