Research presented at the Kansas City Federal Reserve’s annual conference in Jackson Hole, Wyoming, has questioned the long-held perception of U.S. Treasuries as the ultimate “safe haven” asset, according to a report by Ann Saphir and Howard Schneider for Reuters. The study, conducted by economists from New York University, London Business School, and Stanford University, suggests that the behavior of U.S. Treasuries during the COVID-19 pandemic indicates a shift in how these securities are valued, potentially aligning them more closely with other global sovereign debts, Reuters reported.
The research highlighted by Reuters found that, during the 2020 pandemic shutdown, yields on U.S. Treasuries spiked in tandem with those of other global bonds rather than benefiting from a flight to safety as seen in previous crises. Instead of flocking to treasuries, investors marked them down similarly…
