Bonds
With Yields Above 5%, Some Investors Say It's Safe to Start Buying Bonds Again
- Higher fixed-rate coupons offer more protection for investors
- Traders seek silver lining in the worst bear market in decades
This article is for subscribers only.
Embattled debt investors like the look of 5% Treasury yields as they weigh the risk-versus-reward scales for the world’s biggest bond market.
The rise in yields to levels last seen before the financial crisis reflects a run of solid data, with the US economy growing last quarter at the fastest pace since 2021. And a rising tide of Treasury debt issuance, meanwhile, has prompted the return of a positive risk premium for owning longer-dated bonds.