Government bonds aren't the "shock absorbers" investors can rely on in times of volatility, KKR said, while Jamie Dimon this week warned of dangers in credit.

The debt downgrade is raising concerns that investors could reevaluate their appetite for U.S. government bonds, with the potential for rising yields.

It was a sobering day for U.S. assets on Tuesday, with Wall Street, the dollar and longer-dated Treasuries all declining as investors took a breather to digest last week's U.S. sovereign credit downgrade and the latest twists in President Donald Trump's efforts to push his sweeping tax-cut bill through Congress.

Bond yields spiked following Moody's downgrade of US debt. The move highlights a big concern for bond investors that could spark more chaos in markets.

The slump in Japanese bonds worsened Tuesday after the weakest demand at a government debt auction in more than a decade highlighted worries over the central bank’s retreat from the market.

Foreign institutional investors increased their holdings of Chinese government bonds by 49.29 billion yuan ($6.83 billion) in April, marking a third consecutive month of net inflows and longest such trajectory since late 2023,

President Donald Trump knows what it feels like to course correct for economic policies that rattle government borrowing markets.

Market participants were widely split in their opinions on how fast the Bank of Japan should roll back its purchases of government bonds, with views ranging from those urging an acceleration of cutbacks to others advocating for slowdown.