BHK - Fed Raising Rates But Yields Still Negative
The yield on the 3-month US Treasury bill is pushing above 2% today for the first time since 2008. The yield had briefly dipped below zero as recently as late 2015.
Although today's yield seems high, this Great Graphic shows the nominal generic three-month yield going back to 1990. Then, the three-month bill yielded 8%. The peak in the last cycle (2006-2007) was a little above 5%.
It is true that the past business cycles also produced more inflation. However, here we are, nine years since the end of the last recession, and the Federal