Bank failures spark rush to safety

In the wake of recent bank failures, notably Silvergate Capital, SVB Financial Group and Signature Bank, investors have chosen the safety of Treasury securities. Yields across the maturity spectrum have fallen since last week. For instance, the 10-year yield closed Monday at 3.55%, down from 3.98% on March 8.

Simultaneously, spreads on fixed-income instruments have widened. High-yield bond spreads were 494 basis points vs. 400 basis points on March 9. The Bloomberg U.S. Aggregate Bond index's spread was 58 basis points, an 8-basis-points increase.