US government debt continues to be viewed by investors as one of the world's safest assets, but rising borrowing costs, persistent fiscal deficits, and growing competition for global savings are raising concerns about the longer-term sustainability of the country's debt burden, according to Reuters analysis.
The United States has not faced another sovereign credit downgrade, inflation expectations implied by Treasury inflation-protected securities remain relatively contained, and the cost of insuring against a federal default has not surged. These indicators suggest that investors still largely regard US Treasuries as a haven, even as they demand higher yields to hold longer-dated government debt.
