Cash Is Paying More Than Traditional Stock-Bond Portfolio

  • Six-month T-bill yields surpass 5% for first time since 2007
  • Higher rates cut incentives for investors to buy risky assets
Market Has Drastically Repriced Fed Hike Expectations: State Street
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For the first time in more than two decades, some of the world’s most risk-free securities are delivering bigger payouts than a 60/40 portfolio of stocks and bonds.

The yield on six-month US Treasury bills rose as high as 5.14% Tuesday, the most since 2007. That pushed it above the 5.07% yield on the classic mix of US equities and fixed-income securities for the first time since 2001, based on the weighted average earnings yield of the S&P 500 Index and the Bloomberg USAgg Index of bonds.