For many years, the US Treasuries have been known as safe and stable investments. They have been a popular choice for investors around the world, especially during times when the markets are unstable. These government bonds are trusted because they are backed by the full support of the US government. They have been a key part of many investment portfolios and have helped support the global financial system. However, changes in world politics—especially during Donald Trump’s presidency—are starting to challenge this trusted position. This could be a sign that the way the world economy works is beginning to change.
Role of US Treasuries in global finance
The US Treasury securities are instruments through which the federal government borrows money to fund its operations. Issued by the US Department of the Treasury, these securities range from short-term Treasury Bills (T-Bills), which mature within a year, to medium-term Treasury Notes (T-Notes) and long-term Treasury Bonds (T-Bonds) that can span up to 30 years. They are important not just for funding domestic expenditures but also for managing national debt and influencing monetary policy.
Content retrieved from: https://www.firstpost.com/world/why-is-the-world-so-heavily-invested-in-us-treasuries-13879101.html.
