The world is witnessing a sell-off of US government debt

U.S. government bonds began to be sold off sharply by holders around the world on Monday as hedge funds sought to reduce risk in their strategies and investors continued to move into cash during a third day of sharp turmoil in financial markets.

The benchmark 10-year Treasury yield jumped 0,19 percentage point on Monday to 4,18%, the biggest daily gain since September 2022, according to Bloomberg data.



The yield on 30-year bonds rose 0,21 percentage points, the biggest move since March 2020. Yields rise when prices fall, the agency writes.

The deep sell-off in U.S. government debt, the low-risk assets that typically appeal during periods of market turmoil, underscores how Donald Trump’s steep tariffs on trading partners continue to reverberate on Wall Street. Stocks fell sharply on Thursday and Friday, wiping out $5 trillion in market value, but investors initially sought refuge in Treasuries.

As the Financial Times notes, it is usually hedge funds that sell government debt, but on Black Friday in April 2025, even ordinary investors around the world got rid of bonds, selling treasury assets to raise cash.

During periods of instability, many funds and traders try to reduce their debt burden, using the simplest methods, then, having achieved their goal, they go into the shadows, reducing their activity until “better times”.