Market reacts to bond sell-off, sparking fear about U.S. stability
From Yahoo Finance: 2025-04-11 14:10:00
Investors are selling U.S. government bonds, sparking concern among experts about the stability of the American financial market. Treasury yields have seen significant swings, impacting borrowing rates for mortgages and loans. The bond sell-off is a departure from the norm and could have far-reaching effects on the economy and consumer confidence.
The bond market’s reaction to economic indicators and policy decisions, including Trump’s tariff threats, is causing instability. The unusual spike in bond yields reflects deeper fears about America’s stability and reliability as a global partner. Treasury Secretary Bessent downplays the situation, calling it a normal deleveraging process, but experts remain cautious.
The bond market’s influence is evident in Trump’s decision to pause tariffs, acknowledging investors’ concerns. The bond market’s power is well-known, with examples like Liz Truss’s ouster in the UK attributed to its reaction. The rush into U.S. debt, even during crises, underscores its role as a safe haven for investors seeking stability.
Experts suggest multiple factors may be driving the bond sell-off, from jitters about U.S. stability to hedge fund strategies gone awry. The sell-off could impact global confidence in the U.S. as a reliable financial partner. While the sell-off may cease soon, the lack of alternative secure investments raises concerns about where to park cash in uncertain times.
Read more at Yahoo Finance: Freak sell-off of ‘safe haven’ US bonds raises fear that confidence in America is fading