Discussion Paper
Government Bonds' Safe-Haven Property and Inflationary Pressures
Abstract: Earlier this year, escalation of the conflict in the Middle East resulted in sharp declines in major stock indexes as energy prices rose and the global economic outlook deteriorated, but prices of long-term government bonds in major advanced economies also declined (Figure 1). This prompted some commentators to question the premise that government bonds in these major advanced economies will rally in times of increased risk aversion and serve as a safe haven for investors (see for example, Kim, 2026).
https://doi.org/10.17016/2380-7172.4128
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Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: FEDS Notes
Publication Date: 2026-10-16
Number: 2026-10-16-3