A Goldman Sachs Group Inc. logo hangs on the floor of the New York Stock Exchange in New York, U.S., on Wednesday, May 19, 2010.
Daniel Acker | Bloomberg | Getty Images
Investors have piled into short-term U.S. government bonds in a bid to wait out the upheaval caused by a blowout in longer-term yields, according to a Goldman Sachs executive.
An auction this week of 52-week Treasury bills at a 5.19% rate was 3.2 times oversubscribed, its highest demand of the year, said Lindsay Rosner, head of multi-sector investing at Goldman Sachs asset and wealth management.
“They’re saying, ‘I’m now being afforded a lot more yield in the very front end of the curve in government paper’,” Rosner told CNBC in a phone interview, referring to 1-year T-bills. “That is really where you’re seeing investors flock.”
The trade is a key way that institutions and wealthy investors are adjusting to the surge in long-term interest rates that have roiled markets lately. The 10-year Treasury yield has been…
2023-10-06 14:50:49
Source from www.cnbc.com