Global investors sell US Treasuriessell US Treasuries as Iran war stirs panic
Global investors cut their holdings of US Treasuries in March as the war in Iran unsettled markets, with rising concerns over inflation, energy prices and US borrowing costs.
The sell-off matters because Treasuries are a core global safe asset, and a deeper retreat could push yields higher and make financing more expensive worldwide.
Market analysts
Analysts say the pullback reflects growing doubts about US fiscal conditions at a time of war-driven economic pressure. They also point to higher energy costs and weaker expectations for near-term rate cuts as reasons buyers became more cautious.
Investor view
Investors appear to be reducing exposure to US government debt as uncertainty rises across global markets. In this reading, Treasuries no longer look as safe when inflation and geopolitical shocks are both climbing.
US policy view
The market reaction raises pressure on US officials to reassure lenders that debt dynamics remain manageable. It also leaves the Federal Reserve facing a narrower path as it weighs inflation against slower growth.
- US Treasuries are among the most traded securities in global finance.
- Large foreign holders include Japan, China, and oil-exporting economies.
US-Iran Ceasefire War
The United States launched military strikes against Iran on June 26, 2026, in response to a drone attack on a commercial cargo ship in the Strait of Hormuz, calling it a "foolish violation" of the 60-day ceasefire agreement signed just days earlier[2][4][14].
26 June, 09:35 PM
US launches strikes against Iran following commercial ship attack26 June, 04:47 PM
Trump calls Iran drone attack on cargo ship a ceasefire violation
