The Canada Pension Plan Investment Board (CPPIB) warns that US Treasuries could lose their safe-haven asset status if America's fiscal pressures continue to accumulate.

Manroop Jhooty, the pension fund's head of total portfolio management, expressed concerns in an interview that "if the current fiscal situation continues for some time," the US Treasury market may no longer function as a safe haven.

These remarks come amid an ongoing US government shutdown due to fiscal spending deadlock, while market participants' concerns about the dollar's prospects continue to intensify.

The pension plan, which manages C$731.7 billion (approximately $524.3 billion), allocates funds across multiple asset classes globally. Jhooty stated that the plan views bonds "as a good diversification tool in any asset allocation strategy." Currently, CPPIB maintains its exposure to US markets, with American assets accounting for roughly half of its total holdings.

However, Jhooty noted that the long-term concern regarding America's fiscal situation is that Treasuries may begin to "lose their diversification benefits, as they increasingly appear to be risk assets rather than risk-free assets."

Several billionaire investors have expressed concerns about gold being increasingly viewed as a safer asset than the dollar. Ray Dalio previously stated that gold is "undoubtedly" more of a safe haven than the dollar, describing the current gold price surge as reminiscent of the 1970s, when gold soared amid high inflation and economic instability.

Dalio's comments align with those of Citadel founder Ken Griffin, who believes gold's rise reflects anxiety about the dollar.

The Toronto-based pension plan acknowledges that US debt markets are outperforming those of the UK and Japan, which face similar fiscal concerns. However, Jhooty stated that "gold as an alternative store of value to risk-free assets is undoubtedly a beneficiary," adding that European currencies such as the Swiss franc also serve as "stores of value."