BILS - GBIL: Get Paid More For Less With Treasury Bills
2024-02-04 07:25:40 ET
Summary
- The Fed may have shifted its policy stance, but the yield curve remains as inverted as ever.
- Market expectations seem aggressive and investors exposed to duration are risking quite a bit.
- Funds like GBIL, which offer the yield and principal protection benefits of the front-end, stand out.
Treasury yields have declined significantly in recent months, helped by a dovish 'pivot' by the Federal Reserve toward end-2023. From a fundamental perspective, though, there really isn't a compelling reason to cut - jobs continue to outpace expectations, and inflation is running above target levels. To be fair, there have been concerning pockets of stress, most notably in real estate and banking; last week's New York Community Bancorp ( NYCB ) and Aozora Bank ( AOZOY ) numbers being cases in point. Taking a step back, financing structurally high debt levels remain an issue as well – though the US Treasury eased concerns somewhat at last week's refunding , debt and deficits continue to run at unsustainable levels. In sum, there's a push-pull situation here and predicting the near-term rate path is tricky, particularly with a tight election race on the horizon....
GBIL: Get Paid More For Less With Treasury Bills