, Columnist
An Intriguing Safe Haven in the Middle of War and Pandemic
The bond market selloff has exposed the shortcomings of U.S. Treasuries. But would you put your money in China instead?
The People’s Bank of China
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At a time of war, U.S. Treasuries are supposed to be the ultimate safe haven. But recent turbulence in the bond marketplace is giving investors second thoughts.
The latest selloff in Treasuries stems from Federal Reserve chairman Jerome Powell’s remark that the central bank is prepared to raise rates in half-percentage points to fight inflation. Yields on short-term notes climbed quickly, with bond traders fretting over a series of rapid rate increases. When yields rise, bond prices fall.