The financial system is in turmoil as rats are abandoning it.

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Markets are indicating a prolonged period of higher interest rates. Economist El-Erian warns Treasury bonds are losing their safe-haven status. Despite escalating tensions and a surge in bond issuance, yields are rising, and investors are turning to volatile assets, signaling a major downturn for the bond market.

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Proxy Fed funds rate now over 7%, signaling prolonged high-interest rates and ongoing inflation concerns.

JPMorgan’s CEO plans to sell 1 million shares of the 8.6 million shares his family own

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Economist El-Erian Says Treasury Bonds Are Losing Their Status as Safe-Haven Assets

The Treasury market, once the bedrock of safe-haven investments, is now in alarming decline, as emphasized by Mohamed El-Erian on CNBC. Even with Middle East tensions escalating, the expected rush to U.S. government debt is nowhere in sight. Instead, yields are skyrocketing as traders increasingly dump bonds with seemingly little faith left. The turn towards traditionally volatile assets like equities is a glaring red flag. Given the current trajectory, combined with the Federal Reserve’s maneuvers and the looming surge of bond issues, the bond market stands on the precipice of a major downturn.

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