'A swift and sharp sell-off in U.S. Treasuries is rattling global financial markets, shaking the foundation of what has

Does not look good at all.


Why US Treasuries Sell-Off Is Nightmare Scenario for the Economy

https://www.msn.com/en-us/money/markets/why-us-treasuries-sell-off-is-nightmare-scenario-for-the-economy/ar-AA1CBnlj?ocid=winp1taskbar&cvid=8000f25aeef94bbca905972a4f641aea&ei=26

Story by Hugh Cameron • 44m • 5 min read

A swift and sharp sell-off in U.S. Treasuries is rattling global financial markets, shaking the foundation of what has long been considered one of the world's premier safe-haven assets.

Why It Matters


The U.S. Treasury market, valued at nearly $29 trillion, underpins everything from global reserves to corporate borrowing costs. Its stability is central to the functioning of the global financial system. A severe disruption in this market, like the current sell-off, could severely tighten financial conditions worldwide.

If confidence in Treasuries continues to erode, the U.S. may find itself paying more to finance its debt, exacerbating fiscal pressures at a time of persistent deficits and geopolitical tension.

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What To Know


U.S. Treasuries are debt securities issued by the U.S. Department of the Treasury to finance the federal government's spending when its revenues are insufficient to cover its expenses. Yields—the interest rate on Treasuries—spiked on Wednesday as Trump's reciprocal tariffs took effect, signaling that investors are offloading their government bonds in large numbers..................