Why Treasurys are failing their biggest test in decades — and what you should own instead

U.S. Treasurys are providing more evidence that they’re no longer safe havens during times of crisis. Treasury bonds used to be places for investors to weather geopolitical upheaval. Whenever investors shifted to ”risk off” from “risk on,” out went stocks and other risky assets in favor of what was perceived as the world’s safest asset: U.S. government bonds.

Recently, the opposite has been the case — more so after U.S. and Israeli forces attacked Iran on Feb. 28. As you can see from the chart below, the U.S. Treasury’s 10-year yield BX:TMUBMUSD10Y hit a low early on March 1 (Eastern time).