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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The writer is Head of Pictet Research Institute
US Treasuries have rallied strongly in recent months as investors look towards interest cuts. Yields on the benchmark 10-year note have dropped around a percentage point since April with prices moving inversely higher.
But that strong rally has still not allayed longer-term worries among some investors about this cornerstone asset for financial markets — mainly questions about the rising debt burden of the US and whether geopolitical tensions will see some foreign investors scale back purchases of Treasuries.
Washington cannot simply run up budget deficits indefinitely and some investors have grown jittery ahead of US elections, worried that neither candidate for the presidency has a convincing plan to address the sustainability of the US federal debt, which…
