Where are retail gold bullion and equity buyers? Fixed income assets – the income is back in fixed income

By Michael Mackenzie and Liz Capo McCormick – Bloomberg

At $2 Million Per Minute, Treasuries Mint Cash Like Never Before

With the Federal Reserve in no hurry to cut interest rates, investors are flocking back to fixed-income assets in major reset for Wall Street. 

After being held hostage by zero-rate policies for almost two decades, US Treasuries are finally reverting back to their traditional role in the economy.

That is, as a source of income that investors can lock in and rely on, year after year, for years to come — regardless of where yields are at any given moment.

The numbers tell the story. Last year, investors pocketed nearly $900 billion in annual interest from US government debt, double the average over the previous decade. That’s set to rise as over 90% of Treasuries carry coupons of 4% or more. In mid-2020, just 5% yielded that much. Because of the higher interest, investors are also better shielded against any jump in yields.