Former Treasury Secretary Henry Paulson warns U.S. needs an emergency ‘break-the-glass' plan if Treasury demand collapses

Henry Paulson urged U.S. policymakers to prepare an emergency plan if demand for Treasurys breaks down, warning of severe spillovers across the economy. The warning points to a potential government bond market crisis, with implications for Treasury demand, yields, liquidity, and broader financial stability. The article is cautionary and market-wide in scope rather than about a specific issuer.

Analysis

Henry Paulson urged U.S. policymakers to prepare an emergency plan if demand for Treasurys breaks down, warning of severe spillovers across the economy. The warning points to a potential government bond market crisis, with implications for Treasury demand, yields, liquidity, and broader financial stability. The article is cautionary and market-wide in scope rather than about a specific issuer.