Why International Investors Aren’t Buying U.S. Debt

The rise in Treasury yields should make U.S. debt more attractive to international investors still struggling with low returns at home—yet few are buying.

The rising costs of currency hedges means it often isn’t worth it.

Yields on 10-year U.S. government bonds have jumped to 2.9% from 2.1% a year ago, nearing levels last seen in early 2014....