US Treasury bonds led the global bond market, as the sell-off in the stock market intensified risk aversion and triggered demand for safe-haven assets. The benchmark 10-year US Treasury yield fell 10 basis points to 5.09% during the early Asian trading session on Thursday. Other term yields also declined, dragging the Bloomberg Dollar Spot Index lower. The treasury bonds of Japan, Australia and New Zealand are also higher. “The market has finally returned to the old path of pursuing high-quality assets, which is to buy treasury bonds when selling stocks,” said Kit Lowe, senior analyst at ITC Markets. At a time when US bonds are rising, there is an intensification of debate over whether the recent decline that has driven yields to multi-year high levels has unearthed value for investors. A number of fund companies, including Pimco and Morgan Asset Management, are optimistic about bonds, although the risk of another sell-off remains due to accelerated US inflation and a large supply of debt.

US Treasury bonds led the global bond market, as the sell-off in the stock market intensified risk aversion and triggered demand for safe-haven assets. The benchmark 10-year US Treasury yield fell 10 basis points to 5.09% during the early Asian trading session on Thursday. Other term yields also declined, dragging the Bloomberg Dollar Spot Index lower. The treasury bonds of Japan, Australia and New Zealand are also higher. “The market has finally returned to the old path of pursuing high-quality assets, which is to buy treasury bonds when selling stocks,” said Kit Lowe, senior analyst at ITC Markets. At a time when US bonds are rising, there is an intensification of debate over whether the recent decline that has driven yields to multi-year high levels has unearthed value for investors. A number of fund companies, including Pimco and Morgan Asset Management, are optimistic about bonds, although the risk of another sell-off remains due to accelerated US inflation and a large supply of debt.