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Treasuries Have a Hard Act to Follow in 2020 as Optimism Rises

  • U.S. government debt set for best return in 8 years in 2019
  • ‘A lot hinges on the U.S. consumer’: TD Securities’ Misra says
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Photographer: Bloomberg Daybreak

It’s difficult to imagine how Treasuries can top their performance from 2019 in the coming 12 months.

The world’s largest bond market is on track for its strongest year since 2011, with a total return close to 7%, based on Bloomberg Barclays index data. But with 10-year rates now down at around 1.88%, the scope for additional capital gains is more limited. Moreover, the market is entering 2020 in reverse gear. A sell-off in the last quarter trimmed its gains, driving the benchmark up almost a half percentage point from its multi-year low of 1.43% in September.