Economic Buzz: US government bonds are safe-haven assets says IMF, Dollar plays key role as global reserve currency

Julie Kozack, Director of the Communications Department, IMF stated yesterday that the US government bonds are a safe haven asset, and the US dollar plays a key role as the world's reserve currency. The US bond market plays a critical role in finance and in safe assets. And this is underpinned by the liquidity and depth of the US market and also the sound institutions in the US. We don't see any changes in those functions. And, of course, what we can also say is that although there has been some volatility in markets, market functioning, including in the US Treasury market, has so far been orderly, she noted. Kozak was responding to a question on passage in the House of Representatives of the One Big, Beautiful bill and about the increase in yields on long-dated US treasuries.

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