Tweaking Treasury Holdings Without Betting The House

The case for a Treasury bubble seems so clear that investors might be tempted to dump everything and seek higher yields in riskier bonds or even change their, say, 60/40 mix of stocks and bonds to 100/zilch.

They should reconsider. Treasurys do more for investors than provide a dribble of income—they also provide a safe haven when trouble strikes and other assets tumble. A safer approach is to boost yield a little bit without taking gobs of extra risk.