US Treasury bond market wobbles: is the era of America as a safe haven ending?
The treasury bond mess: is this the demise of the US as a safe haven?
The Trump administration's attempt to prop up Treasury bond prices by ramping up buybacks has failed to stem rising yields, with the 30-year bond near its highest level in two decades. This comes as interest payments on the $40tn national debt consume a record share of federal spending, and foreign central banks reduce their holdings. The piece examines whether the US is losing its status as the world's safe haven, with private investors adding volatility and domestic policies undermining confidence.
The main threat to treasurys’ status as the paramount store of value in the world, though, comes from within.