Concerns are rising about US public finances due to Trump's tax bill and trade war, prompting investors to diversify their bond portfolios. The US's growing deficit and the weakening dollar are eroding the appeal of US debt markets, pushing investors towards European, Japanese, and Australian markets offering strong yields. While the dollar remains the world's reserve currency, the turmoil highlights the need for international allocation. Analysts predict increased US deficits and higher Treasury yields, further fueling diversification trends.

Prepared by Christopher Adams and reviewed by editorial team.