Heightened economic uncertainty is prompting investors to flock to safe-haven assets, with government bonds being a primary beneficiary. This increased demand is pushing bond prices higher and yields lower, signaling a shift in investor sentiment.

The move towards government bonds reflects mounting concerns about a potential slowdown in economic growth and increased volatility in the stock market. Investors are seeking the relative security and stability offered by government debt in times of economic turbulence.

Analysts note that this trend could continue if economic conditions worsen, potentially leading to further declines in bond yields. The increased demand for government bonds provides a stable and reliable investment amid turbulent market conditions.