Harvard Business School (April 15)
2026/ 04/ 16 by jd in Global News
“Traditionally, investors have accepted a lower yield—or interest rate—for Treasuries because of their perceived safety and liquidity. Buy a Treasury and you could sell or pledge it almost instantly for cash anywhere in the world. Today, that ‘convenience yield’ has disappeared amid record US debt.” Two factors, namely “scarcity in dollar lending” and “oversupply of Treasuries” are creating a divergence in the value of the dollar, which continues to command a premium, and the value of Treasuries, which have “lost their special premium relative to G10 bonds, and have less of an advantage against emerging market bonds.”
Tags: G10 bonds
