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.

Photographer: Michael Nagle/Bloomberg
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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.