Economist El-Erian Says Treasury Bonds Are Losing Their Status as Safe-Haven Assets

The Treasury market, once the bedrock of safe-haven investments, is now in alarming decline, as emphasized by Mohamed El-Erian on CNBC. Even with Middle East tensions escalating, the expected rush to U.S. government debt is nowhere in sight. Instead, yields are skyrocketing as traders increasingly dump bonds with seemingly little faith left. The turn towards traditionally volatile assets like equities is a glaring red flag. Given the current trajectory, combined with the Federal Reserve’s maneuvers and the looming surge of bond issues, the bond market stands on the precipice of a major downturn.