Deutsche’s Saravelos Pitches US Debt Buying Idea Over Mar-a-Lago

The Trump administration can ease the risks of the US’s “unsustainable” fiscal position by encouraging more domestic buying of Treasuries in a shift that would likely push down bonds and the dollar, according to Deutsche Bank AG.

With US lawmakers seemingly reluctant to slash the budget deficit and foreign creditors likely unwilling to restructure their debt holdings, George Saravelos, global head of FX research, suggests policymakers address their fiscal strains by reducing their reliance on international buyers of US bonds and leaving more longer-duration Treasuries in the hands of local investors.