Why I Still Don't Use A 60-40 Amid 5% Treasury Bond Yield

Treasury yields have pushed to decade highs, but the article argues against a significant allocation to Treasury bonds in a 60/40 portfolio because real Treasury yields remain deeply negative. It cites ongoing inflation pressures and geopolitical risks as factors that could further erode real returns. The view is bearish on duration and supportive of a more defensive, selective fixed-income stance.

Analysis

Treasury yields have pushed to decade highs, but the article argues against a significant allocation to Treasury bonds in a 60/40 portfolio because real Treasury yields remain deeply negative. It cites ongoing inflation pressures and geopolitical risks as factors that could further erode real returns. The view is bearish on duration and supportive of a more defensive, selective fixed-income stance.