Skip to content
Subscriber Only

Treasuries Lose Out to Negative-Yield Debt in Germany and Japan

  • `I sold a small amount of Treasuries,' Daiwa's Katayama says
  • U.S. debt will remain underpinned by flight to safety: Mizuho
Updated on

For all the talk that America’s bonds will attract investors as yields drop below zero in Germany and Japan, Treasuries are lagging behind and the underperformance is even worse after accounting for a weakening dollar.

German government securities have returned 3.9 percent in the month ended Wednesday based on changes in both the debt and the currency, according to Bloomberg World Bond Indexes. Japan’s gained 3.7 percent, while Treasuries rose 1.2 percent.