this post was submitted on 09 Apr 2025
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Finance

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US Treasuries sell-off deepens as ‘safe haven’ status challenged (www.ft.com)
submitted 1 week ago by misk@sopuli.xyz to c/finance@beehaw.org
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Archive: https://archive.is/2025.04.09-073405/https://www.ft.com/content/0005e091-930d-46ff-9e81-8591704a9282

Treasuries sold off on Wednesday as President Donald Trump’s tariffs took effect, deepening investor concern about the “safe haven” status of US sovereign debt.

The 10-year US Treasury yield jumped to 4.51 per cent before falling back to 4.37 per cent — up 0.11 percentage points on the day — while the 30-year yield briefly rose above 5 per cent. The 10-year yield has risen from less than 3.9 per cent earlier this week.

The moves offer a new challenge to the Trump administration, which had previously cited lowering Treasury yields as a key policy aim, and could mark a loss of investor confidence in the world’s largest sovereign debt market.

“The sell-off may be signalling a regime shift whereby US Treasuries are no longer the global fixed-income safe haven,” said Ben Wiltshire, a rates strategist at Citi.

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[–] misk@sopuli.xyz 4 points 1 week ago

Money market instruments are usually short term and backed by companies that rival smaller countries in size so it’s not given that they will get hit beyond what’s happening due to overall chaos. Junk bonds got hit first because they’re just risky, now treasuries join the gang but this part was intentional. Fixed income is still going to be safer than equities or derivatives overall.