Bonds appeal to investors for two reasons: income and capital stability. However the two objectives are often at loggerheads. The hunt for higher income usually comes with risk, which forgoes capital stability. And capital stability typically requires sacrificing income; as lower income bonds are safer.
On this spectrum, US treasuries very much support capital stability. They provide a way to manage risk and preserve wealth.
Weight in Benchmark (%)
Source: Bloomberg Global Aggregate Float-Adjusted and Scaled Index. Data as of 27 May 2022
However, they also have advantages for income. US treasuries offer higher levels of income than other developed markets, such as Japan and Europe. This means that by targeting US treasuries investors can achieve international exposure, while stripping out the negative yielding debts.