Treasury Bills Offer Stock-Like 5% to Take Fed, Debt-Limit Risk
- Six-month bill first US obligation to reach level since 2007
- Rate of return on bills competes with earnings yield on stocks
The US Treasury building in Washington, DC.
Photographer: Ting Shen/BloombergThis article is for subscribers only.
For the first time in nearly two decades, investors can earn more than 5% on some of the safest debt securities in the world. That’s competitive with riskier assets like the S&P 500 Index.
There’s just a small catch: US Treasury bills have become less safe, because without an act of Congress, the payment may be delayed.