The Imperial Presidency

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U.S. bond sell-off drives market worries around the world

U.S. government bonds underwent a big sell-off early Wednesday, signalling investors were dumping the usually safe assets as tariff turmoil continues to rock the world.

They're typically seen as the safest bonds in the world because the chances that the U.S. government would default on the loan is virtually inconceivable.

In times of uncertainty, like when the stock market makes wild swings as it has been the past few days, investors usually reach for U.S. government bonds because they're safe. But today, investors were selling them as the U.S. continued to create unease with broad tariffs.

"The U.S. government is the source of instability … nobody trusts that the White House knows what it's doing," said Moshe Lander, a professor of economics at Concordia University in Montreal. "People are racing away from the source of instability."

Following the chaos in the bond market, [Canadian] Finance Minister François-Philippe Champagne and his Japanese counterpart, Katsunobu Kato, shared concerns about the U.S.'s slate of tariffs in a phone conference, according to the ministry.

Canada is the current chair of the G7. The ministry says Canada is working with Japan and the European Union to maintain global stability in financial markets and the financial system.