In Singapore, U.S. Treasuries faced significant declines on Wednesday, indicating that investors are offloading their safest assets amidst a global market turmoil triggered by U.S. tariffs. The situation has taken a distressing turn, prompting a rush for cash to ensure safety.

According to Jack Chambers, a senior rates strategist at ANZ in Sydney, the current situation transcends basic market fundamentals and is primarily driven by the need for liquidity.

The 10-year U.S. Treasury yield, considered a key safe haven, surged by 20 basis points in Asia, breaking its usual trend of stability in that time zone. At 4.46%, the yield has risen by 59 basis points from its low on Monday, with hedge funds identified as the main sellers. These funds have been compelled to exit leveraged positions that typically benefit from small price discrepancies between cash and futures in calmer market conditions.

Mukesh Dave, the Chief Investment Officer at Aravali Asset Management in Singapore, highlighted the concerns associated with prime brokers potentially demanding higher margins or increased collateral due to the unusual market volatility.

Thirty-year U.S. yields also jumped by 24 basis points to 4.9553%, signaling the largest sell-off in the long end since 1981 if the trend continues over three days. Notably, significant selling pressure was observed in Japan and Australia.