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The Yield Dilemma: Is It Still Wise to Invest in U.S. Government Bonds?
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U.S. Treasury bonds are highly sensitive to macroeconomic conditions. When inflation rises, low-yield bonds lose their appeal to investors, もっと見る
U.S. Treasury bonds are highly sensitive to macroeconomic conditions. When inflation rises, low-yield bonds lose their appeal to investors, leading to a decline in their prices and an increase in bond yields.
The yield on the $米国債10年 (US10Y.BD)$ has risen from its low point of 0.394% in March 2020 to 5.021% in October of this year, driven by a high inflation environment.
On Nov 1, the Federal Reserve Chairman announced a pause in interest rate hikes , and after the release of the CPI on Nov 14, data showed that inflation was under control. A series of news led to a drop in the yield of the U.S. 10-year treasury bond from its October peak of 5% to the current 4.39%. While the rate hike is on hold, the persistent issue of the growing federal deficit and the risk of a government shutdown are still unresolved. The U.S. Treasury bond yield remains uncertain.

🎙️Q: In such a situation, would you still choose to invest in U.S. Treasury bonds?
🎙️Q: What allocation strategy, such as the traditional 60/40 or 70/30 portfolio would you choose?

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