A bullish case for U.S. Treasuries?

While not frontier related per se (hence the new post category–“General Market”), the following piece, put forth by Dino Kos, managing director of equity research at Portales Partners and a former executive vice president of the markets group at the Federal Reserve Bank of New York, in Monday’s Financial Times, makes a very convincing case as to why U.S. long dated treasuries could remain in tact for the near future–an almost contrarian notion at the moment despite the fact that the market is the world’s most liquid and that the security’s two biggest holders include two of the world’s largest economies (China and Japan).  Moreover, I’ll argue that as long as there is a correlation between emerging and frontier market capital flows and the overall risk sentiment, treasury yields are as good a proxy as any as to where investors anywhere in the world see the best risk adjusted returns.  Only until 30 year yields breach 5%, for instance, can we say that risk appetite is healthy again.