US Treasury bonds, traditionally seen as safe-haven assets, are showing concerning behavior as they trade more like risky assets under President Trump’s trade policies.
Longer-term Treasury yields have surged while the dollar has declined, and Treasury bonds have often moved in the same direction as stocks and other risky investments—rising and falling together.
This challenges their “risk-free” status, with implications for the global financial system that uses Treasuries as benchmarks and collateral.
The pattern suggests investor confidence in US bonds is weakening amid America’s growing debt and confrontational policies toward major creditors.