US Treasurys could again serve as a hedge if the AI-driven selloff deepens
Julius Baer analysts say US government bonds may regain their role as a diversifier if the AI-led market correction intensifies, according to Market Talk.
- published on Newsmetry
- original source published
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner. connect the api →
what happened
According to Julius Baer analysts, as reported by Market Talk, US Treasurys could restore their diversification role if the market correction led by artificial intelligence deepens.
The bank acknowledges that the correlation between stocks and bonds has risen, but says a sharper downturn in AI stocks would look like a classic negative demand shock. Weaker data-center spending, lower household wealth from equities and slower hiring would hit consumption and business investment. Julius Baer notes that between 2000 and 2020, 10-year US Treasurys delivered positive returns during equity drawdowns. The bank argues the recent correlation does not necessarily erode their hedging power and sees intermediate-duration US government bonds as an effective portfolio hedge.
why it matters
If this view proves right, demand for government debt could strengthen in a fresh wave of equity selling, supporting bond prices and pushing yields lower. For investors worried about a drop in technology shares, the note is a reminder that government bonds can act as a buffer within a portfolio.
market impact
US Treasurys: possible demand as a safe haven if equities fall further on AI concerns
tags
instruments
sources
- Treasurys May Be Effective Hedge if AI-Driven Selloff Deepens — Market Talk, 20 October 2026 at 09:33 UTC
- Treasurys May Be Effective Hedge if AI-Driven Selloff Deepens — Market Talk, 20 October 2026 at 09:33 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner.
get stories in real time ↗