Treasuries Rally Drives Home Haven Role as Credit Worries Swirl

All it took was a classic bout of haven buying to wake up a slumbering Treasuries market and drive benchmark yields to the lowest in months.

At a time when the US government shutdown has delayed key official readings on employment and inflation, jitters around regional banks’ credit exposure jolted Treasuries last week, after yields had barely budged for days. The move came as an index of the lenders’ shares slid the most since April’s tariff-fueled market chaos.

As rattled investors piled in, the monetary policy-sensitive two-year yield dipped below 3.4% to the lowest level since 2022, while the 10-year ...