PIMCO | The American privilege is fading

> "U.S. Treasuries long carried a **“convenience yield**” – a premium investors paid for the **liquidity** and **safety of dollar assets** compared with other high quality sovereign bonds." > "Over the past decade, that gap has evaporated, shrinking from nearly **80 bps** to **roughly 0** when adjusting German bund and Japanese government bond yields hedged back into dollars using maturity-matched cross currency…