Which is better investment option for NRIs, FCNR or US Treasuries?

Indian banks are currently offering around 6-7% interest rates in dollar terms on 3-5 year Foreign Currency Non-Resident (FCNR) deposits, outpacing US Treasuries paying 4.2-5.3%. However, FCNR deposits come with lock-ins and bank risk. Experts say FCNR may suit NRIs seeking higher USD yields who can lock in funds and eventually spend them in India, while Treasuries offer greater liquidity.