The Sarcasm Report v.159

May 5, 2012
No guaranteed safety in financial safe havens

Government bonds, especially US treasuries, are a renowned safe haven, but investors have been worrying about a bond bubble since 2009.

It hasn't burst yet, but as the US economy picks up it could rapidly deflate, warns Dan Dowding, the chief executive of IFAs Killik & Co in Dubai. "If financial markets and the macroeconomy continue to stabilise in 2012 and 2013, demand for US treasuries could fall."