Market Turmoil Challenges Traditional Safe-Haven Assets

According to BlockBeats, in the midst of one of the most severe market sell-offs in years, traditional safe-haven assets are showing mixed performance. As reciprocal tariffs take effect today, U.S. Treasury bonds have plummeted, with the 10-year yield reaching its highest level since February this year. Gold prices have risen during the day but remain down for the week, while global stock markets have hit a one-year low during this period. The U.S. dollar has also weakened. Some analysts suggest that German bonds and currencies like the yen might emerge as new safe havens. However, these assets also face risks related to liquidity, economic conditions, and monetary policy outlooks. Pilar Gomez-Bravo, Co-Chief Investment Officer for Global Fixed Income at MFS Investment Management, stated, "If you want to protect your capital and achieve some level of return, there are not many assets to choose from." The sell-off in U.S. Treasuries is a clear example of investors losing confidence in traditional safe-haven assets.