Treasuries Beat Rest of Bonds as Mortgages Show 1% Growth

Treasuries are beating all other U.S. fixed-income securities for the first time in three quarters as investors around the world seek the safest assets.

U.S. government debt has gained 2.9 percent since March, while corporate bonds returned 1.9 percent, mortgages rose 1 percent and municipal bonds increased 1.8 percent, according to Bank of America Merrill Lynch index data. The combination of Europe’s debt crisis, China’s slowdown and record stimulus by the Federal Reserve means Treasuries are outperforming the global bond market by 1.3 percentage points, after lagging behind by 2.4 percentage points in the previous quarter.