US Treasury securities serve as the global safe asset due to their extreme safety and liquidity. However, the tariff shock in April 2025 led to a sharp downturn in US equity markets and a spike in long-term yields. This column argues that a substantial part of this increase in yields reflected a decline in the ‘convenience yield’, stemming from the ‘safe asset’ status of Treasuries. It finds a small role for heightened inflation expectations, and more evidence of a lack of inflows from

Tag-uri: Inflatie