The head of the European insurance regulator said,Recent volatility in the U.S. Treasury market is questioning its position as a safe haven。

Petra Hielkema, president of the European Insurance and Occupational Pension Authority (EIOPA), made the comment last week while making a statement on behalf of the EU financial regulator, according to people familiar with the matter.

Amazing assessment at this closed-door meetingImpressed by some tensions in the market about US Treasury bonds, U.S. Treasury bonds have been regarded as global "risk-free" assets and serve as collateral for trillions of dollars in daily loans.While there is no sign that European regulators have taken any specific action, these comments highlight how rapidly the world’s perception of U.S. Treasury bonds has changed in just a few weeks.

The U.S. Treasury market experienced drastic volatility, with the 10-year U.S. Treasury yield hitting its biggest gain in two decades last week as U.S. President Donald Trump’s comprehensive tariff threatened to disrupt global trade and push the economy into recession. Investors are rushing to buy alternative assets such as gold, German government bonds and the euro.

Frankfurt-based EIOPA did not immediately respond to phone calls and emails seeking comments on Thursday.

According to anonymous people, Hielkema also saidTreasury market turmoil may be one of the reasons why the U.S. decided to suspend some tariffs. Trump had hinted last week that the suspension was to give trading partners an opportunity to reach a deal, although he also called the bond market "very tricky."

According to people familiar with the matter, Hielkema saidProblems may arise in less prominent parts of the market, such as those involving hedge funds or private credit. They added that companies using non-sovereign securities as collateral may face liquidity restrictions in the future.

Another person familiar with the discussion said that while regulators say the market is currently functioning normally, margin recovery for entities holding long positions in stocks and companies paying fixed rates and charging floating rates has increased. Hedge funds cut their high-yield bond and private equity positions.

Ministers discussed how to deal with Trump’s tariff war during negotiations and how to retaliate if the negotiations fail, people familiar with the matter said. But a senior government official saidThe main concern of the meeting is market turmoil。

Banking in the region has been affected by turmoil, but with the capital buffers established over the years, it can withstand such volatility, according to people familiar with the matter. Meanwhile, the European Banking Authority (EBA) plans to focus on geopolitical tensions in its next stress test, they said.

A representative of the European Securities and Markets Authority (ESMA), the EU market regulator, said the current turbulent times could bring an opportunity to curb the dominance of U.S. financial and market participants, people familiar with the matter said. A representative from ESMA confirmed that the regulator attended the meeting but declined to comment on the discussion.