As the first half of the year draws to a close, US Treasury bonds have confounded the predictions of doom prevalent at the start of 2010, largely due to the eurozone debt crisis, which has boosted the needs for the US dollar and American government debt.
With US equities currently faltering in and out of negative territory for the year after a torrid May, investors are once more in a position of having to make a choice: bonds or shares.
It is a decision that hinges on whether the US economy can escape contagion from the eurozone and its various austerity programs, and keep growing, forestalling concerns about disinflation and possibly even a double-dip slow-down.