Core Viewpoint - Recent market volatility, geopolitical issues, and trade news have led some investors to question the safe-haven status of U.S. Treasury bonds, despite concerns being perceived as exaggerated [1] Group 1: Credit Rating and Economic Resilience - Moody's recent downgrade of the U.S. credit rating and concerns over the large fiscal deficit have raised doubts among investors, but the U.S. still maintains significant credit advantages due to its economic scale, resilience, and the dollar's role as a global reserve currency [1] - The U.S. market's size, liquidity, and strength are unparalleled, and U.S. Treasury bonds and credit assets are expected to remain important allocations for global investors [1] Group 2: Fiscal Deficit and Interest Rates - Although a projected fiscal deficit of about 7% over the next few years raises concerns, this deficit is roughly split between interest payments on national debt and fiscal spending [1] - With the Federal Reserve potentially moving towards interest rate cuts, interest expenditures are expected to decrease, which will help reduce the deficit size and alleviate concerns regarding the debt-to-GDP ratio [1] Group 3: Demand for U.S. Treasury Bonds - The demand for U.S. Treasury bonds is expected to remain resilient due to the wealth structure within the U.S., where households have a significantly higher allocation to equities compared to other regions [1] - If U.S. households were to shift just 1% of their assets to fixed-income investments, it would be sufficient to support Treasury issuance for the next 2 to 3 years [1]