Additionally, Treasuries are still more attractive than many other global government bonds. For instance, Treasury yields are 50 basis points higher than comparable Japanese bonds and a little less than 1% higher than comparable German bonds.
Looking ahead, the Fed is expected to hike short-term rates sometime next year. However, most Treasury bonds may not see an immediate effect.
“The Fed will raise rates next year, and the short-term rates will probably go back toward 1%,” Schatz added. “But that will probably have minimal impact on the 10-year, because the yield curve is so steep right now.”
iShares 20+ Year Treasury Bond ETF
For more information on U.S. Treasuries, visit our Treasury bonds category.
Max Chen contributed to this article.
