Great Income Squeeze Begins as Fed Spells End to Easy Yields

For income investors, the days of easy returns are vanishing.

In recent years, investors were paid handsomely to play it safe. Short-term US Treasuries offered yields above 5% — a rare chance to earn solid returns without locking up capital or chasing risk. For pensions, insurers and endowments, it marked a decisive break from the post-crisis decade of near-zero interest rates. Even if high inflation tempered real returns, institutions that once had to reach for yield suddenly had room to sit still.