BIL - BIL: Still Shines And Is Worth Holding
2024-06-27 08:33:04 ET
Summary
- Fed maintains interest rates at 525 to 550 basis points, only planning one rate cut in 2024.
- SPDR Bloomberg 1-3 Month T-Bill ETF offers stability, 5.34% yield, and low expense ratio, making it a worthwhile investment for 2024.
- Bond-based ETFs like BIL are sensitive to interest rate changes and do not benefit from rate cuts due to T-Bill's ultra-short maturity dates.
- The economics reported date is not yet at a level that can convince the Fed to start interest rate cutting. Therefore, a fund with 5.34% with no risk is considered a HOLD for the near future.
In the last Federal Reserve meeting on 11-12 June 2024, the Federal Open Market Committee decided to keep the interest rates at 525 to 550 basis points. The dot plot reflects that the Fed will only cut the interest rate once in 2024 (press conference and projections materials here ). This higher-for-longer interest rate preserves the shiny T-Bill as one of the most desirable, moderately high-yield, and non-questionable safe investments. ...
BIL: Still Shines And Is Worth Holding