Strategists question Treasury safe-haven status as debt tops $40T

Macro
โดย Seeking Alpha·US·Read original
Summary · why it matters

Market strategists are raising pointed concerns about the traditional safe-haven status of U.S. Treasuries as the national debt crosses $40 trillion. Eduardo Repetto, chief investment officer at Avantis Investors, said in a CNBC interview that when you get to 40 trillion, that's a big number, so maybe it's not as safe as we thought. David Rosenberg, founder and president of Rosenberg Research, argued the real culprit behind rising yields since February is a surge in long-dated issuance by hyperscalers, with three of the four major hyperscalers now running free cash flow negative and forced to tap capital markets. Repetto also noted that benchmark bond indexes are debt-weighted, so the flood of Treasury issuance has shifted allocations without investors realizing it, with government securities now around 50% of the Bloomberg index versus 20% twenty-five years ago. Rosenberg said Treasury Secretary Scott Bessent's recent $4 billion bond buyback was merely a trial balloon, and that the government has drawn a line in the sand that it's not going to allow the ten-year to get to 5%.

Impact on stocks 5

Artificial Intelligence▼ · 3 stocks
Amazon.com Inc
AMZN
▼ NegativeCapitalrelevance

Hyperscalers' free cash flow negative and tapping capital markets, increasing supply and potentially raising yields.

Alphabet Inc Class C
GOOG
▼ NegativeCapitalrelevance

Hyperscalers' free cash flow negative and tapping capital markets, increasing supply and potentially raising yields.

Microsoft Corporation
MSFT
▼ NegativeCapitalrelevance

Hyperscalers' free cash flow negative and tapping capital markets, increasing supply and potentially raising yields.

Spatial Computing / AR/VR▼ · 1 stocks
Meta Platforms Inc.
META
▼ NegativeCapitalrelevance

Hyperscalers' free cash flow negative and tapping capital markets, increasing supply and potentially raising yields.

Cloud & Digital Infrastructure▼ · 1 stocks
Oracle Corporation
ORCL
▼ NegativeCapitalrelevance

Hyperscalers' free cash flow negative and tapping capital markets, increasing supply and potentially raising yields.

© 2026 MarketDXNews