It’s been a wild few months for the bond market, and the roller coaster has some Wall Street titans casting doubt on the safe-haven status of US government bonds.
Jitters about the US debt market have been front and center after Moody’s downgraded US debt on Friday, leaving America without a top-tier grade from a major ratings agency.
The move added to jitters about US growth and the ballooning deficit in recent weeks, with the tax bill moving through Congress causing anxiety among some investors.
Bond vigilantes — investors who sell bonds out of concern for the US fiscal outlook — have re-entered the chat in the last week, sparking another sell-off and a big spike in bond yields after throwing a fit over the trade war in April.
The benchmark 10-year US Treasury climbed past 4.5% on Monday, while the 30-year US Treasury briefly surpassed 5%.
As the bond market convulses in 2025, the takeaway for investors…
