2024-02-10 00:37:44 ET
Summary
- Short-term bond ETFs, such as the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL), offer attractive yields above 5% and are considered risk-free investments.
- The yield curve remains inverted due to the Fed's cautious approach to rate decreases and their desire to see further confirmation of low inflation.
- The short end of the yield curve is more likely to decline, making short-term treasury bills a favorable investment option.
Short-term interest rates have been quite attractive to me for a while now. Back in January, I wrote up the short-term bond ETF, also known as the SPDR® Bloomberg 1-3 Month T-Bill ETF (BIL). I also included it in my top-5 of best ideas for 2024 . I realize it is very dull position, but the current yield on the short end of the yield curve exceeds that on the long end. The potential reward is pretty sizeable in absolute terms (above 5%), and these treasuries are often referred to as the risk-free rate or similar terms....
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For further details see:
Fed's Rate Path And Why Short-Term Treasuries Are A Smart Play