Investors could turn to Treasurys as a source of safety, Michael Schumacher, head of macro strategy at Wells Fargo Securities, told CNBC’s “Fast Money.”
For relative safety, “I would look at the front-end of the U.S. Treasury curve. You’ve got the 2-year treasury yielding just about 4%. It’s gone up enormously,” he said. “If you think about the real yield, which a lot of people in the bond market focus on, it’s probably not a bad place to hide out.”
The 2-year rate started 2022 trading at around 0.73%. Wednesday’s move puts it 328 basis points (3.28 percentage points) above that level.
