- Interest rates around the globe are either outright negative or, in the case of the U.S., remain at historically low levels.
- With U.S. rates at historically low levels, investors are offered sparse income opportunities, but also little, if any, protection in the event U.S. Treasury (UST) yields retrace a portion of 2020's sizable decline.
- We don't expect to see a spike in rates, but investors have already seen early in 2021 that UST yields can rise even if the Federal Reserve (Fed) appears to be in no hurry to move in that direction.
For further details see:
Searching For Yield, Not Reaching For Yield