How long will those high rates last? Should you lock up a portion of your chicken money in a 10-year Treasury note currently paying 4.25%? Short term T-bills pay so much more. But the global bond market that sets the rates on Treasury securities is betting the Fed will get inflation under control — and that a rate of 4.25% is enough return to offset future inflation fears for the next decade.
Every report, every utterance of a Fed governor is carefully scrutinized for the answer to this question: Have they raised rates high enough, or will they go higher? But if an economic slowdown causes lower rates in six months, would you be sorry that you hadn’t purchased a 10-year Treasury note this week — paying 4.25% for 10 years? Or even a three-year Treasury note, currently paying about 4.6%? You can do any of these in yourAnd here’s one other choice to get slightly higher rates for longer. It involves just a bit more risk, but the rates are tempting.