TBUX - It's Time To Say Goodbye To 'T-Bill And Chill'
2024-01-26 21:36:00 ET
Summary
- From October 2022 through December 2023, cumulative returns for the US Treasury Bill 1–3 Month Index were 6.1%, compared with 7.5% for the Bloomberg US Aggregate Bond Index.
- Historically, in the three months prior to the first Fed rate cut, the yield on the 10-year US Treasury fell an average of 90 basis points.
- Investors who remain in money-market funds will likely see their cash yields decline, because cash yields are nearly perfectly correlated with the fed funds rate.
By Monika Carlson, CFA | Senior Investment Strategist - Fixed Income
It's Time To Say Goodbye To 'T-Bill And Chill'Investors who wait too long to get off the sidelines may find they’ve missed out.