Do treasury bonds go up in a recession?

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Question: Do treasury bonds go up in a recession?

Answer:

Yes, Treasury bonds often go up in value during a recession.

When the economy is struggling, investors tend to seek safer investments, and U.S. Treasury bonds are considered one of the safest. This increased demand for Treasury bonds typically drives up their prices.

Additionally, during a recession, central banks like the Federal Reserve may lower interest rates, which also supports higher bond prices.

Lower rates make the fixed interest payments from existing bonds more attractive, further boosting their value.