this post was submitted on 09 Apr 2025
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[–] [email protected] 86 points 5 days ago (21 children)

The moves offer a new challenge to the Trump administration, which had previously cited lowering Treasury yields as a key policy aim, and could mark a loss of investor confidence in the world’s largest sovereign debt market.

“The sell-off may be signalling a regime shift whereby US Treasuries are no longer the global fixed-income safe haven,” said Ben Wiltshire, a rates strategist at Citi.

This is potentially a seismic shift in global finance/economics.

If US treasuries are no longer considered the "investment of last resort" (which they shouldn't be, since even sane Americans lack the commitment and risk tolerance to fight corruption and degeneracy in their own country), this may result in the dollar losing its status as the global reserve currency.

If that happens, the Americans will be fucked.

[–] [email protected] 26 points 5 days ago (3 children)

US treasuries is literally what we used in university as the "risk free rate"

When you have government officials saying they want to default on the "risk free" bonds it undermines markets in a completely unprecedented way.

Shockingly stupid.

[–] [email protected] 14 points 4 days ago (1 children)

I don't think most people understand how critical this is. US treasuries losing safe haven status is the type of thing that will be taught in history books 80 years from now.

It will be like learning about Gavrilo Princip in 2025. Seemingly "meaningless" tedious historical facts, but at a closer look Princip (indirectly) shaped the course of much of human history in the 20th century.

[–] [email protected] 4 points 4 days ago

Last year there were rumblings about this exact thing happening and far too many people just blew it off.

Now the chickens have come home to roost and everyone is shocked. 🙄

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