As May draws to a close, the US bond market faces significant upheaval amid rising concerns about unsustainable debt and a growing deficit. Trump’s tariff announcements have further complicated the situation, leading to questions about the future of US treasuries and the sustainability of the US dollar as a reserve currency. With interest expenses on US debt projected to soar, the need for buyers of this debt becomes increasingly critical. Investors are advised to remain cautious in a volatile market, focusing on probabilities rather than forecasts, while being prepared for potential market changes.
