Surge in Safe-Haven Demand Drives US Treasury Yields to New Lows

Rising Safe-Haven Demand Drives Down Treasury Yields

Amid escalating risk-off sentiment and uncertainties in fiscal policy and geopolitics, prices for US Treasuries have climbed, sending the 30-year yield to its lowest level of the year.

30-Year Yield Drops Below Key Threshold

By midday in New York, yields across maturities fell by at least 2 basis points, with some declines reaching 4 basis points. The 30-year yield fell below 4.80% for the first time this year, and dipped below its 200-day moving average, a level not seen since December.

Key Drivers Behind the Rally

• Stock market declines triggered safe-haven flows
• Geopolitical tensions in the Middle East escalate
• Postponed Supreme Court ruling on tariffs boosts fiscal outlook
• Strong demand at recent Treasury auctions supports prices

Global Bond Market Spillover

The movement in US bonds has also been supported by international trends, with UK 10-year yields dropping to 4.35%, marking the lowest closing level in over a year, indicating a global shift toward risk-averse assets.