Bond Market’s Big Short Bet Gets a Wakeup Call as AI Trade Wobbles
📡 Bloomberg Markets · 1 min read ·
Part of composite article AI Stocks Bounce Back After $1 Trillion Wipeout—But Wall Street's Fear Gauge Just Hit a 4-Month High View full article →
US Treasuries are showing early signs of returning to their traditional role as a safe haven. That shift could catch off guard investors who bet heavily that this year’s bond slump would deepen.
For months, many investors positioned for bonds to keep falling. Now, with the AI-driven trade losing momentum, demand for US government debt is tentatively rising.
The move is still fragile, but it matters. If Treasuries regain their haven status, crowded short bets on bonds could face losses.