U.S. Treasury bonds have traditionally been considered the safest investment during global crises, but recent events suggest this may be changing.
When Israel attacked Iran on June 13, something unexpected happened: U.S. Treasury yields went up (indicating less demand) while government bonds from other countries, particularly in Asia and Australia, saw yields fall (indicating higher demand). This pattern repeated after President Trump’s April 2 tariff announcement.
International government bond ETFs have significantly outperformed U.S. Treasury ETFs this year, suggesting investors should diversify their safe-haven holdings beyond just U.S. Treasurys.