Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: Investing in shorter-term bonds, a wasteland for many years thanks to ultralow interest rates, is a lot more appealing these days—though it’s hardly risk-free.
The two-year U.S. Treasury note is now yielding around 2.87%, up from 1.55% a year ago.
The recent spike in yields has also made shorter-term securities much more competitive against longer-term holdings and dividend-paying stocks.
The 10-year U.S. Treasury note was recently at 3.15%, about 30 basis points above the two-year note’s yield. (A basis point is 1/100th of a percentage point.) But the shorter-dated note has the added appeal of being less sensitive to changes in interest rates, or duration risk. Meanwhile, the average S&P 500 stock yields about 1.9% Regards, Ted https://www.barrons.com/articles/short-term-bonds-are-looking-much-better-1539854101?refsec=income-investing
