Treasury bonds are maintaining their appeal to investors due to their perceived safety and expectations of stable inflation. The consistent demand is further fueled by international investors looking for secure investment opportunities amidst a backdrop of global economic instability.

This persistent interest helps to keep bond yields at comparatively lower levels. Investors often turn to Treasury bonds during times of economic uncertainty, viewing them as a reliable store of value. The stability offered by these bonds makes them an attractive option, especially when compared to riskier assets such as stocks.

Furthermore, expectations regarding future inflation play a significant role. If investors anticipate moderate inflation, the fixed income offered by Treasury bonds becomes more appealing. This is because the real return, which is the nominal yield minus inflation, remains relatively stable.