The Irresistible 2% U.S. Yield Whose Downside Appears Forgotten

A statue of Albert Gallatin, a long-serving U.S. secretary of the Treasury, stands in front of the U.S. Treasury Building in Washington, D.C.

David Rogowski/Bloomberg
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Who’s afraid of locking up their money at yields of 2.6 percent for 30 years? Basically no one, or so it seems.

Just take a look around the world. China bought $6.5 billion of longer-dated U.S. bonds in February, even as the nation reduced its overall holdings of Treasuries by $15 billion.