US Treasury bonds are at risk of losing their haven status should US fiscal stress continue to build, according to Canada Pension Plan Investment Board.

“We worry that if the fiscal scenario continues for a period of time” the Treasury market could stop being a haven, Manroop Jhooty, the pension plan’s head of total fund management, said in an interview.

The remark comes as the US government shutdown over fiscal spending drags on and market participants increasingly sound warnings over the dollar’s fate.

The pension plan, which manages C$731.7 billion ($524.3 billion), invests across several asset classes globally, and considers bonds to be “good diversifier in any asset allocation strategy,” Jhooty said. For now, CPPIB is sticking to its US exposure, with the country making up roughly

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