While benchmark 10-year Treasury yields are back below 2%, Treasury bond yields still look more attractive for foreign investors. For instance, yields on 10-year German bunds is 0.22% and yields on 10-year Japanese government bonds is 0.03%.
“What’s more, most of the cash is going into long-term Treasuries, which suffer the worst losses from rising rates and inflation. This year’s inflows into TLT have outpaced inflows into short-term debt funds like the iShares Short Treasury Bond ETF and the iShares 1-3 Year Treasury Bond ETF,” according to Bloomberg.
iShares 20+ Year Treasury Bond ETF
Tom Lydon’s clients own shares of GLD and TLT.