US Treasuries Regain Safe-Haven Status as 10-Year Yield Falls 17 Basis Points

US Treasuries staged an abrupt comeback last week, reclaiming the safe-haven role they had largely surrendered through months of sticky inflation and heavy supply. According to COINOTAG, the yield on the benchmark 10-year Treasury note fell 17 basis points over the week — a decline of 0.17 percentage points.

The trigger sat on the other side of the trade. The tech-heavy Nasdaq 100 lost 5.5% over the week as doubts about artificial-intelligence valuations spread across equity markets, and the pullback in risk appetite coincided with renewed demand for US government debt.

The rebound marks a turnaround for a market that had struggled to serve as a reliable haven. Persistent inflation and a heavy calendar of Treasury issuance had weighed on bond prices for months. Inflation erodes the real value of a bond's fixed interest payments, while a heavy issuance schedule increases the volume of debt that buyers must absorb, and together those forces muted the defensive behavior investors traditionally expect from US government debt during episodes of equity-market stress.

Treasuries are widely viewed as among the world's principal safe-haven assets. Their prices move inversely to yields: when demand for the debt rises, prices climb and yields fall. The 10-year yield, in particular, serves as a global benchmark that influences borrowing costs across the economy, from mortgage rates to corporate financing — a channel through which shifts like last week's reach the borrowing costs households and companies face. Whether the renewed haven demand proves durable remains the open question, with the inflation path and the continuing pipeline of Treasury supply — the same forces that had earlier eroded the market's defensive reputation — the key variables for observers to track.

This content was first published on COINOTAG: https://en.coinotag.com/us-treasuries-safe-haven-10-year-yield-17bp