#u-s-debt News & Analysis

The explosion of U.S. debt is wiping out the ‘safety premium’ of Treasury bonds, and time is running out for an orderly fiscal solution, IMF warns

The International Monetary Fund warns that surging U.S. federal debt is eroding the traditional 'safety premium' that has long made Treasury bonds attractive, with yields now exceeding comparable hedged G10 sovereign bonds. This structural shift signals diminishing confidence in U.S. fiscal sustainability and leaves policymakers with a narrowing window for orderly deficit reduction before market dynamics force more disruptive adjustments.