"End Of An Era": Deutsche Bank Warns If Treasury Market Disruption Continues, Fed Will Have To Start QE

By George Saravelos, chief FX strategist at Deutsche Bank

We have been warning about a confidence crisis in the dollar for more than a month now. Events over the last few days are in our view validating those fears. We are witnessing a simultaneous collapse in the price of all US assets including equities, the dollar versus alternative reserve FX and the bond market. We are entering uncharted territory in the global financial system. It is very hard to foresee market dynamics in coming days but we would make the following observations: