Global Market Rout: U.S. Treasuries Under Siege Amid Rising Yields

U.S. Treasuries experienced intense sell-offs, signaling investor unease following U.S. tariffs. This spurred a dramatic rise in yields and liquidity worries, prompting urgent discussions among financial leaders. The instability, reminiscent of past crises, may indicate a shifting reliance on Treasuries as a global safe haven.

The market turmoil sparked by U.S. tariffs took a dramatic turn on Wednesday as U.S. Treasuries faced significant sell-offs. Investors, concerned about liquidity, began dumping even their safest assets, causing yields to rise sharply.

Hedge funds, at the center of this financial maelstrom, faced mounting pressure from lenders and resorted to offloading long bonds, leading to the 10-year U.S. Treasury yield shooting past 4.5%. In response, Japan's central financial authorities convened for an emergency meeting to assess the implications.

Amidst reminiscent volatility akin to the Global Financial Crisis and the COVID-19 pandemic, experts caution of potential shifts in the fundamental role of U.S. Treasuries as a global financial anchor, as foreign investors might rethink their position or even shed U.S. debt holdings.

(With inputs from agencies.)