Treasury bonds: Still safe for investors
Published 9:45 am Friday, January 26, 2024
You may have read reports about an impending “debt crisis” in the U.S. Should you be worried about investing in Treasury securities?
Part of the concern over debt has been driven by the cost of government borrowing, which has risen because of higher interest rates. But it’s worth noting that while interest expenses have risen to nearly 2% of gross domestic product (GDP), this measure had exceeded 3% in the early 1990s. So, while the upward trend of federal debt could prove problematic down the road, the claims of a current crisis may be overblown. And Treasury securities are…


