ANALYSIS-Treasury rally leaves investors scrambling for yield plays

Yet the Federal Reserve's hawkish shift, demand from investors in countries where domestic bonds offer flat or negative returns and the unwinding of popular short bets on Treasuries have depressed yields. This has cast doubt on the future of the so-called reflation trade.

NEW YORK: A tumble in Treasury yields is pushing some investors toward other income-generating vehicles including dividend-paying stocks and emerging market bonds, often in exchange for a greater degree of risk.

Earlier this year, few expected that Treasury yields would sink closer to historic lows by summer despite a resurgence of U.S. growth after the coronavirus pandemic.