Treasuries Escape Shadow of Fed Liftoff to Eclipse Other Assets
- Rising dollar undermines emerging markets and commodities
- Corporate bonds undone by rush to borrow before the Fed hikes
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With the specter of a Federal Reserve interest-rate increase looming over global financial markets all year, the asset class most susceptible to rising rates -- Treasuries -- has topped other U.S. investments through the first three quarters of 2015.
The slow economic growth and financial-market volatility that have caused the Fed to delay liftoff have benefited U.S. government bonds as other asset classes stumbled. With plunging commodity prices pushing inflation expectations to the lowest since 2009, Treasuries have been a haven as global equities slumped and bond yields in Germany and Japan touched all-time lows.