We received confirmation yesterday afternoon that the Federal Reserve is pausing rate hikes.
That’s the first FOMC meeting without a rate hike since early last year. In that time the Fed has raised its target Fed Funds Rate ten times from 0% up to it’s current target range of 5% – 5.25% in an effort to fight inflation and take the economy off emergency life support.
As a result of rate hikes over the last year, short-term treasury yields are quite attractive at the moment and the highest in almost twenty years!
Annualized Yields:
6-month: 5.345%
9-month: 5.264%
1-year: 5.27%
2-year: 4.743%
3-year: 4.323%
If you’re confused why short-term yields would be higher than longer-term yields, I explain it in the short 3-minute video linked below.
This video has actually been my most popular video to date by far (click on image to view).
Disclosures:
Past performance is no guarantee of future results. All investments maintain risk of loss in addition to gain.
Data from third-parties is believed to be reliable but accuracy is not guaranteed. Much of the data used to interpret the markets and forecast returns are often at odds with each other and can result in different conclusions. Many different factors impact prices including factors not mentioned here.
This is not investment advice but merely a general commentary. Individualized investment advice cannot be provided until a thorough review of your unique circumstances and financial goals is completed.
Views provided here are current only as of the moment of posting and are subject to change at any time without notification.
