The US debt, from threat to markets to refuge
In a matter of days, the public debt of the United States has gone from being the epicenter of market alerts to becoming the premier safe haven in recent episodes of widespread divestment.
The US public debt has become a safe haven for investors amid recent market turmoil, with its 10-year bond yield dropping nearly 40 basis points to below 5%. This shift has occurred as investors have grown cautious about the prospects of tech stocks and AI-driven investments, and have sought refuge in US Treasury bonds. Meanwhile, the French debt market has faced significant pressure, with its 10-year bond yield surpassing 5% for the first time since 2002, driven by concerns over political instability, social protests, and budget deficit challenges.
France's debt yield has now exceeded that of the US, a first since 2013. Moody's is set to update its credit rating for France today, which could further impact investor sentiment.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
