U.S. Treasuries are weak due to reserve asset management institutions' preference for gold.

As high inflation and policy uncertainty raise concerns, coupled with an increasingly unfavorable supply and demand landscape, government bond prices may decline further. The benchmark U.S. Treasury bonds highlight this issuecentral banks around the world are increasing their gold reserves while reducing their holdings of U.S. Treasuries. Worries about rising yields and falling foreign holdings of U.S. Treasuries may have contributed to the recent joint intervention by the U.S. and Japan in the foreign exchange market to support the yen. Since President Donald Trump introduced reciprocal tariffs in April 2025, causing turmoil in global markets, international reserve management institutions have reduced their holdings of U.S. Treasuries by more than $300 billion. Around the same time, gold prices accelerated, highlighting the fact that central banks are increasingly turning to this metal.