Why Not Just Buy The US 5-Year Treasury?

The collapse in yields around the developed world is startling. For fun, we wanted to see how many 5-year or longer dated government bonds are currently yielding less than the US 5-year on-the-run treasury bond (which is down 23 bps YTD itself). Looking at the list below, is it at all surprising the USD has been on such a tear?

The US 5-year treasury bond is currently yielding 148 basis points. Here are some notable bonds that are yielding less than the US 5-year:

• Canadian 10-year yield is 15 bps lower
• Japan 30-year yield is 23 bps lower
• German 30-year yield is 85 bps lower
• France 30-year yield is 41 bps lower
• Belgium 30-year yield is 47 bps lower
• Denmark 30-year yield is 89 bps lower
• Italy 10-year yield is 26 bps lower
• Netherlands 30-year yield is 77 bps lower
• Spain 10-year yield is 24 bps lower
• Sweden 30-year yield is 56 bps lower
• Swiss 30-year yield is 109 bps lower

 What the rest of the world is yielding...