Global Bond Rally Restores Safe Haven Status
Government bonds rallied sharply as rising anxiety over debt-fueled artificial intelligence spending drove investors out of equities. Treasuries gained despite hotter inflation data, reviving their role as a market hedge.
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Global investors rushed out of equities and into government debt during Wednesday's trading sessions, as mounting anxiety over debt-funded technology spending triggered a broad market rout. The flight to safety drove sovereign yields lower despite hotter-than-expected inflation data across the United States. This unexpected shift signals that sovereign bonds are reclaiming their traditional role as a portfolio hedge against equity market turbulence.
