Key facts
- Treasury yields fell across maturities on Thursday.
- Investors sought safety in Treasurys amid a tech stock sell-off.
- Recent dovish comments from Fed officials may be easing rate hike concerns.
Investors are returning to Treasurys as a safe-haven asset, reversing a recent sell-off that had pushed yields to multi-decade highs. The shift occurred on Thursday as a rout in chip stocks wiped about $1 trillion from the sector and investors grew cautious about the AI trade ahead of earnings season. Despite hotter-than-expected inflation data this week, investors shrugged off the figures, seeking shelter from stock market volatility and macroeconomic uncertainty. Treasury yields fell across maturities, signaling a return to the traditional inverse relationship between stocks and bonds. Recent dovish comments from Federal Reserve officials, including Governor Michelle Bowman and New York Fed President John Williams, may also be contributing to easing concerns about further interest rate hikes.