US Treasuries are as much sought-out by investors in a crisis or pending crisis, but lately, Treasuries have become much less popular as a means of storing wealth.
The reason is simple: T-bills don’t offer a good return, and neither do other sovereign debt instruments. Although US Treasury yields have been climbing, owing partly to expectations of inflation, in recent weeks this trend has reversed, amid renewed concerns about the pandemic.
On Tuesday, the World Health Organization warned that global infections were reaching their highest levels, prompting many fund managers to rotate money into safe-haven bonds. The yield on the 10-year Treasury slid to 1.5% while the 30-year yield was reduced to 2.26%.
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