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The $24 Trillion Treasury World Suddenly Looks Less Dangerous

  • Bond duration is falling as signs suggest inflation is cooling
  • Investors more compensated for interest-rate risk than in 2020
Pedestrians pass in front of the New York Stock Exchange in New York.

Pedestrians pass in front of the New York Stock Exchange in New York.

Photographer: Michael Nagle/Bloomberg

The historic bond selloff has wreaked havoc across global markets all year, while fueling a crisis of confidence in everything from the 60-40 portfolio complex to the world of Big Tech investing.

Now, heading into a possible economic downturn, the near-$24 trillion Treasury market is looking less dangerous all of a sudden.