U.S. Treasuries Behavior During COVID-19 Pandemic

SOURCE finance.yahoo.com
New research presented at the Kansas City Fed's annual research conference in Jackson Hole questions the long-held belief that U.S. Treasuries are the world's 'safe haven' securities. The study suggests that during and after the COVID-19 pandemic, Treasuries behaved similarly to debt issued by other countries and big corporations.

Key Points

  • U.S. Treasuries exhibited behavior similar to debt issued by other countries and corporations during the COVID-19 pandemic.
  • Investors did not flock to Treasuries during the pandemic, raising questions about their 'safe haven' status.
  • The Federal Reserve's response to the spike in Treasury yields was questioned in the research.