Core Viewpoint - The article discusses the recent decline in U.S. Treasury prices and the rise in yields due to global investor sell-offs, exacerbated by U.S. tariff policies and increasing recession risks [1]. Group 1: Market Dynamics - U.S. Treasury prices have been falling while yields are rising, influenced by global financial market volatility [1]. - The uncertainty surrounding U.S. tariff policies is causing overseas financial institutions to sell U.S. Treasuries to mitigate losses and enhance liquidity [1]. - The risk of a U.S. economic recession is increasing, which may lead to a contraction in credit and financing demand, creating tension in capital flows and economic fundamentals affecting Treasury yields [1]. Group 2: Future Outlook - The volatility of U.S. Treasuries is expected to increase due to the combined effects of tariff-related uncertainties and recession risks [1]. - Market expectations of U.S. recession and inflation rebound are weakening the safe-haven appeal of U.S. Treasuries [1]. - The unpredictability of Trump’s policies is likely to continue disrupting the market, and a potential liquidity crisis from Treasury sell-offs could force the Federal Reserve to restart bond purchases or provide liquidity support, although intervention options are limited under the current balance sheet reduction [1]. Group 3: Foreign Holdings of U.S. Treasuries - As of the end of January this year, Japan holds the largest amount of U.S. Treasuries at $1,079.3 billion, followed by China with $760.8 billion, and the UK with $740.2 billion [2].