Accessible version Liquid Insight US Treasuries – Value vs Utility Key takeaways By Bruno Braizinha Chart of the day: Correlation between USTs and S&P total returns (3m) Highest correlation levels since the late 90s reduce utility of USTs as hedge an diversifier for portfolios Source: BofA Global Research, Bloomberg -80% -60% -40% -20% 0% 20% 40% 60% 80% 94 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26 Correl 7-10y USTs vs S&P Current The missing utility premium US Treasuries remain historically cheap rel ...

Bitcoin: A Low-Volume Lull While the Macro Backdrop Is Quietly Turning Japanese government bond yields continue to rise as domestic inflation remains elevated. Japan has historically been a significant source of demand for US Treasuries, so a sustained rotation by Japanese investors back toward domestic bonds could reduce foreign demand for US government debt and place renewed upward pressure on US yields. This is not our base case, and the latest US inflation print has reduced some immediate pressure. The ...