Bonds: Not So Safe Anymore?
USAThu Jan 29 2026
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Bonds used to be the go-to for keeping investments steady. But now, things have changed. More debt and higher interest rates are shaking things up. This makes bonds less reliable as a safety net.
Governments are borrowing more. Interest rates are staying high for a while. This mix is making bonds riskier. Suddenly, bonds can drop in value. This is especially true when there are worries about governments spending too much or trade fights.
A big investment company says bonds aren't as safe as they used to be. They've been careful with certain bonds for a while now. Last week, bond markets got shaky. This was partly because of U. S. trade threats. Japan's bond market felt it too. There were new worries about Japan's money and a bad bond sale.
The U. S. needs lots of money from other countries. This is to pay for its debt. But the world has more bonds and higher interest rates. This makes it harder for the U. S. to get the money it needs.
So, what's the big picture? Bonds aren't the safe bet they once were. More debt and higher interest rates are changing the game. Investors need to think differently about how they keep their money safe.