The Economist.
Way back in 1790, America had its first Secretary of the Treasury.
Alexander Hamilton.
My name is Alexander Hamilton.
Alexander Hamilton had a bold idea.
He proposed that the government should take on the war debts of America's 13 states,
an effort that was chronicled in rap battle form in Lin-Manuel Miranda's hit musical.
But Hamilton forgets his plan would have the government assume state's debts.
Now place your bets as to who that benefits.
It illustrated how Hamilton became the godfather of the American government bond market.
The US soon issued open-ended securities that paid 6% interest a year,
the first true Treasury bonds.
Hamilton wanted a system where assets were transferable, safe, and liquid.
That grew into a market worth tens of trillions of dollars,
and Treasuries became the world's ultimate safe asset.
But then came March 2020.
It's been a volatile month for the 10-year Treasury yield
as the coronavirus continues to panic the bond market.
As the pandemic took hold, many investors dumped government bonds for cash.
And the sudden selling caused the Treasury market to seize up.