New Delhi, April 10 -- Once considered the gold standard of safe-haven assets, US Treasuries are now showing signs of vulnerability amidst a volatile macroeconomic environment, raising critical questions about their role in global portfolios.

On April 8, an unusual pattern rattled US markets - equity indices slipped, but long-term Treasury yields surged sharply. The 10-year and 30-year Treasury yields witnessed extreme intraday swings of 20-30 basis points, with closing levels 12-13 bps higher than the previous day. In fact, the 30-year yield has climbed an eye-popping 50 bps in just three trading sessions - a level of volatility not seen since the onset of the pandemic in March 2020.

According to Madhavi Arora, Lead Economist at Emkay ...