Treasury yields rise and haven status weakens, Greg Ip notes

Treasury yields rise and haven status weakens, Greg Ip notes
Treasurys losing appeal as safe asset

Greg Ip warns that U.S. Treasurys, long seen as the world’s preferred safe asset, are appearing less secure. He observes that their yields are not as low relative to other securities and that, in times of market stress, Treasurys are failing to act as the traditional safe haven.

Greg Ip previously reported that the U.S. is urging foreign holders not to sell Treasurys as concerns mount over market fragility and rising long-term rates, according to a recent article. In an earlier piece, Ip detailed how nine major tech companies have amassed about $3 trillion in off-balance-sheet AI commitments, far exceeding their lease and borrowing obligations, as noted in this report. These developments accompany growing questions about Treasurys' role as a safe asset.

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