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There’s a Wall of Cash Eager to Buy Treasuries on Any Price Dip

  • It’s ‘a resilience play that makes sense’: BlackRock’s Thiel
  • Pensions, mutual funds and hedge funds have all piled in
A neon dollar sign is hung on the wall at the Bureau of Engraving and Printing in Washington, D.C., U.S.

A neon dollar sign is hung on the wall at the Bureau of Engraving and Printing in Washington, D.C., U.S.

Photographer: Andrew Harrer/Bloomberg

Investors overseeing trillions of dollars are plowing money into U.S. government debt like never before, in a wave that’s only gaining strength as the spreading coronavirus casts doubt on the global growth outlook.

Evidence of the insatiable demand can be found across the fixed-income universe. Pensions, which have been ramping up bond allocations for more than a decade after a change in regulations, now hold a record amount of longer-dated Treasuries. Bond mutual funds saw a historic inflow of money last year, with no sign of a slowdown. Even hedge funds have piled in.