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Treasury safe-haven appeal fades as investors seek more yield

Two new studies suggest investors are showing less tolerance for low returns in Treasurys, weakening their role as a purely “safe” destination.

Reported · Written up by our desk · Government Bonds

The Wall Street Journal Markets reports that research is finding signs investors are becoming less willing to accept Treasurys’ relatively low yields despite their traditional safety appeal.

According to the outlet, two new studies point to changes in investor behavior, indicating Treasurys are not retaining the same level of “coveted” status as a safe haven.

The studies’ findings imply that the market’s demand for Treasury exposure may be influenced more by return considerations than by safety alone, as investors weigh lower yields against risk-reduction value.

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