New York
CNN
—
Global markets are reeling over President Donald Trump’s haphazard approach to tariffs and an escalating trade war with China. Stocks have been volatile, and an unsettling shift has emerged in the bond market.
Earlier this week, as stock markets around the world declined, US Treasuries also sold off. Stocks and bonds declining in tandem raised red flags.
Typically, when investors sell off stocks in times of crisis, they pile into US Treasuries, seeking the safety of an asset backed by the full faith and credit of the US government.
Yet as stocks declined, investors abruptly sold off US Treasuries, raising questions about how much they value the promises made by the US government to pay its debts amid concerns about how tariffs will impact economic growth.
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