Dollar's Comeback Squeezes Bondholders, Crypto Markets

The US dollar has made a comeback after its slump in 2025, climbing 2.7% year-to-date through early July 2026 and putting pressure on bondholders.

As the 10-year Treasury yield rose to 4.56% by July 10, investors began to feel the pinch of rising yields, which inversely affect bond prices.

To mitigate this risk, some investors have turned to shorter-duration holdings, reducing their exposure to rate-driven price declines and limiting potential losses.

Others have opted for below-benchmark duration positioning or global diversification into non-US bonds, particularly given the dollar's prior weakness in 2025.