Gold vs government bonds: Why investors are diversifying away from sovereign debt - Business Today
Gold vs government bonds: Why investors are diversifying away from sovereign debt - Business Today
Source: Business Today
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DW NOTE
The timing here is clarifying. Treasury yields are up 29% year-over-year and the 10-year is at 5.19% while the U.S. deficit runs at 6% of GDP. Gold has fallen 21% from its January high but still trades north of $4,000. Investors aren't diversifying away from sovereign debt on theory — they're watching real yields turn negative again while the government borrows $1.9 trillion it has no plan to repay.