Maybank: Supply pressure and safe-haven buying in a tug-of-war; U.S. Treasuries seek a new equilibrium

Maybank says US Treasury investors are looking for an "equilibrium" yield level as concerns over Treasury supply and inflation heat up alongside rising demand for safe-haven assets. "US Treasuries appear to be searching for a new equilibrium after two consecutive weeks of bull flattening," said Winson Phoon, the bank's head of fixed income. "The risks are no longer one-sided, with Treasury supply and inflation concerns increasingly being offset by AI-related credit risk and hedging demand."