Investors Flock to 1-Year T-Bills as Short-Term Haven Amid Bond Market Turmoil

Investors have piled into short-term U.S. government bonds to wait out volatility caused by a blowout in longer-term yields.

Demand for 52-week Treasury bills was the highest this year as they offer much more yield than before.

The strategy takes advantage of the expectation that rates will be higher for longer than anticipated.

If that happens, longer duration Treasuries and corporate bonds could offer good value in a year.

With longer-dated Treasuries crashing, managers are reducing portfolio duration using 1-year T-bills.