Still the most attractive bond
While numerous analysts are calling for US 10 Year Treasury bond yields to surpass 2% by year end, the fact remains US Treasuries are still far more attractive than any other developed country in the world. Investors should be careful believing interest rates MUST go up simply because they are “low”.
Remember there are trillions of dollars around the world that must invest in “safe” bonds, giving US Treasuries a potential source of demand. This will especially be true if global economic growth slows causing already overvalued stock markets to enter a bear market.