US Treasury selloff deepens as inflation fears erode safe-haven status

US Treasury yields climbed sharply on Monday, marking a significant shift in sentiment for the global bond market.

The selloff challenges the long-held perception of Treasuries as a reliable 'risk-free' asset, as investors increasingly price in the prospect of higher interest rates for longer.

MarketWatch reported that the move signals the potential end of an era for the long-term bond bull market, driven by inflation that is taking hold and pushing yields higher.

MarketWatch reported that the move signals the potential end of an era for the long-term bond bull market, driven by inflation that is taking hold and pushing yields higher.

The repricing has prompted a tactical shift among fixed-income investors, who are increasingly favoring short-duration bond funds.

This rotation reflects a growing caution toward long-dated paper as the yield curve adjusts to a more inflationary environment.

The selling pressure is broadening across global bond markets, suggesting that the risk premium for duration is rising as confidence in the central bank's ability to tame prices without economic damage wanes.