Is the US Treasury's Reign at Risk? A "Safe Haven" Under Threat?

Unprecedented sell-off raises questions about the future of the US dollar and global financial stability.

According to a recent report by the Wall Street Journal, the US Treasury market has witnessed a significant sell-off. The yield on 30-year Treasury bonds surged from 4.4% to 5% last week. This is a notable development, as investors typically flock to US Treasuries as a safe haven during times of market volatility. The fact that this traditional safe-haven asset is being sold off is quite unusual.

This unusual selling behavior has led to speculation that foreign investors may be dumping US debt holdings, prompting discussions of a potential "doomsday scenario" that could weaken the United States' dominant position in the global financial system.

Given his background as a real estate developer who built his career on managing debt, Trump surely understands the implications of the signals emanating from the US bond market.