Debt Investors May Be Ready to Start Buying Bonds Again

After a run of solid economic data, the rise in 10-year Treasuries’ yield, to 5%, makes them attractive to embattled investors.

By Michael Mackenzie & Garfield Reynolds | October 26, 2023 at 01:37 PM

Photo: Traders work on the floor of the New York Stock Exchange on January 3, 2023. Photographer: Michael Nagle/Bloomberg

Embattled debt investors like the look of 5 percent Treasury yields as they weigh the risk-vs.-reward scales for the world’s biggest bond market.

The rise in yields to levels last seen before the financial crisis reflects a run of solid data, with the U.S. economy growing last quarter at the fastest pace since 2021. A rising tide of Treasury debt issuance, meanwhile, has prompted the return of a positive risk premium for owning longer-dated bonds.

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