Want a risk-free 5% return? How to buy a 3-month Treasury
Publishing timestamp: 2023-03-08 14:16:42
Summary
Bond yields have surged, with short-term Treasurys now offering a risk-free return of 5%. This follows comments from Federal Reserve Chair Jerome Powell that interest rates may have to remain higher for longer to quell inflation. While this may spook the stock market, it presents an opportunity for fixed income investors to put idle cash to work. Investors can purchase Treasurys directly from the U.S. government or through a brokerage firm, but should be aware of fees and minimum purchase requirements. However, investors should also be aware of the potential risks, including inflation and missed investment opportunities in other assets.
Sentiment: NEUTRAL
Keywords: u.s. 3 month treasury, investment strategy, bonds, u.s. 2 year treasury, business news, jerome powell, economic events,
Source: https://www.cnbc.com/2023/03/08/want-a-risk-free-5percent-return-how-to-buy-a-3-month-treasury.html