MARKET INSIGHTS
05/04/2018
Can Uncle Same Protect YOU From Higher Rates?
With nearly $15.0 trillion in marketable public debt outstanding, U.S. Treasury (UST) securities are viewed as the most liquid asset class in the fixed income universe, offering money and bond market investors a high-quality solution, with a variety of different investment aspects. As the Fed raises rates, the rate hike is reflected in the weekly 3-month Treasury Bill auction, not only offering investors a rate hedge for their portfolios but also providing the opportunity for higher yield enhancement as a result of the Fed’s tightening moves, with essentially no duration risk.