WASHINGTON, DC: The statue of former Treasury Secretary Albert Gallatin stands in front of the north wing of the U.S. Treasury Department headquarters building on April 24, 2025, in Washington, DC. (Photo by J. David Ake/Getty Images)
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In the spring, market participants warned that the US Treasury market was dead. Pundits, financial reports and analysts at the time were predicting a significant decline in global demand for US Treasuries due to the implementation of tariffs, an increasing budget deficit, a credit rating downgrade and the Trump administration’s “America first” policies.
Six months later, the Treasury market says, “I’m not dead yet.”
Why Investors Thought US Treasuries Would Sell Off
Since April, there have been a number of reasons why investors were concerned about bonds, specifically US Treasury bonds.
#1: Liberation Day
The announcement of broad-sweeping tariffs on April 2 initially spooked the…
