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Sign InThe United States has recorded its weakest Treasury auctions in over three years, deepening the distress across global sovereign debt markets. This sharp decline in demand is primarily driven by mounting investor anxiety over a potential war with Iran, prompting a critical re-evaluation of Treasuries as safe-haven assets. The pressure has spilled over into the United Kingdom and Europe, signaling a broader erosion of global liquidity and rising yields. Financial institutions are struggling to price risk effectively as geopolitical volatility widens bid-ask spreads in core markets. This surge in yields is translating into higher borrowing costs for both individuals and corporations, intensifying global economic pressures. Analysts warn that if weak demand for U.S. debt persists, it could destabilize other asset classes and further elevate financing costs worldwide.