Treasuries: flight to futility

When financial times are tough, buy something that holds onto its value. That’s what investors have been doing. And rightly so, what with the collapse of Lehman Brothers and the life-threatening troubles at AIG and Washington Mutual. But what counts as safe? It looks like investors think US government debt is the place to hide. In July 2007, just before the financial crisis broke, the 10-year bond yielded 5.1%. It was to 3.5% on Monday morning – after a 20 basis point drop over the crisis-wrack...