Former U.S. Treasury Secretary warns that the U.S. Treasury bond market may face a demand collapse and emergency plans should be prepared in advance

Mars Finance News, according to Cointelegraph, former U.S. Treasury Secretary Henry Paulson warned that U.S. authorities should prepare short-term, targeted contingency plans in advance for the possibility of a collapse in future U.S. Treasury demand. He said that once a crisis occurs, the impact would be extremely severe. The U.S. Treasury market is seen as a cornerstone of the global financial system, and if it becomes unstable, it could spill over into the pricing of assets such as corporate bonds, mortgage loans, and stocks. The report noted that if the crisis leads to a weakening of confidence in the U.S. dollar, it could prompt funds to flow into alternative value-storing assets such as Bitcoin and gold; however, Tether, which uses U.S. Treasuries as its primary reserve assets, may also face redemption and de-pegging risks.