American government debt, traditionally viewed as the ultimate safe asset, has entered a risky regime due to the impact of inflation and rising interest rates during the pandemic. Bondholders have faced significant losses, as inflation has eroded the real value of their investments while increasing interest rates have further decreased the market value of these bonds. A reported 26% decline in the real terms value of a portfolio of treasury bonds highlights this shift in perception regarding safety, with serious implications for investors and central bankers alike.