US Treasuries still top haven asset despite Trump tariffs, market volatility, analysts say
US Treasuries’ performance fell 2.4 per cent in the week to April 11, the most for a five-day period since 2001
US Treasuries will remain a dominant safe-haven asset amid limited alternatives, supported by potential US government interventions to stabilise the market despite short-term volatility, according to analysts.
The US government bond market was in focus after a sharp sell-off in the second week of April following President Donald Trump’s “Liberation Day” tariffs. The possibility of overseas investors reducing their US dollar and debt positions as leverage also challenged US Treasuries’ safe-haven status.
However, the US government debt market stabilised last week after US officials said they were committed to addressing the situation and would deploy tools if needed.
US Treasuries’ performance fell 2.4 per cent in the week to April 11, the biggest weekly slide since 2001 amid sell-offs, according to Bloomberg data. Last week, the securities rose 0.8 per cent.
“Despite all the discussion on US Treasuries, we still think there is an investment case; you may just want to stick with short duration [debt] to avoid price volatility,” Tai Hui, chief market strategist for Asia-Pacific at JPMorgan Asset Management, said in a briefing on Wednesday.