End in Sight for Treasurys Party? Rush to Safe Haven Expected to Slow as Economy Improves
U.S. Treasury debt has been a surprising standout investment so far this year, but further gains may get tougher from here.</br></br>Ten-year Treasury notes returned nearly 2.7% through the end of February, according to Bank of America Merrill Lynch indexes, outstripping returns in the stock and corporate-debt markets.</br></br>Worries about Greek debt and of the U.S. economy pushed investors back into the ultimate safe-haven asset, outweighing anxieties about government deficits and the potential inflationary risks of ultralow Federal Reserve interest rates.</br></br>Still, Treasury returns this year are small in comparison with their moves in 2008 and 2009. And most analysts don't see an easy path to bigger gains, barring another financial crisis.</br></br>"The market is not very emotional at this point," said David Ader, head of government bond strategy at CRT Capital.