Cash Looks Competitive With Short-Term Rates Moving Ever Higher
- Three-month Treasury bills yield more than S&P 500 dividends
- Relentless rate rise undercuts stock, corporate-bond bulls
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For the first time in a decade, cash is competitive.
As the Federal Reserve raises benchmarks, short-term Treasury rates have inched relentlessly higher, with the the S&P 500 Index dividend yield falling below the three-month bill yield for the first time since 2008. That has investors weighing a move out of riskier assets, such as dividend-paying stocks or short-term corporate bonds.