Econo Fact

1 week ago | econofact.org | Jeremy Stein |Econo Fact |Binyamin Appelbaum |Scott Horsley |Greg Ip

United States Treasury bonds have long been viewed as a highly liquid investment with very little risk of default. They have served as a safe haven for investors and also provided a benchmark interest rate for mortgages, car loans, corporate debt, and other bonds. Typically, Treasury bond yields fall at times of financial stress as demand for Treasury securities rise. But this time is different. Bond prices have fallen and yields have risen in the wake of the policy volatility of the past month.