Accounts to buy bonds from the government jumped fivefold as yields boomed
Publishing timestamp: 2023-03-16 15:30:21
Summary
Safety-focused investors opened accounts at TreasuryDirect.gov to buy Treasury bonds and other securities directly from the U.S. government, with 3.6 million accounts opened in 2022, up from 689,369 in 2021. The spike in investor interest coincides with the Federal Reserve's rate hiking campaign, which spurred a rise in bond yields, making Treasury securities more attractive to income-focused investors. The article also highlights the popularity of Series I savings bonds, which offer a fixed rate of interest and a rate that varies based on inflation, and the potential drawbacks of investing in government bonds, such as the risk of inflation outpacing yields and missing out on investment opportunities in stocks.
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Tickers: US6M,
Keywords: business news, investment strategy, bonds,