Are

Saver’s finally being 

Rewarded?

Who the Heck Bought $1.2 trillion in New US Treasuries over the past 12 Months?

Russia, Japan, and the Fed dumped. So who bought?

And who bought $1.22 trillion in new debt over the past 12 months?

Not the Fed. Its Treasury holdings fell by $70 billion from the beginning of the QE-Unwind through April. Foreign holdings have only picked up $109 billion over the period. Leaves $1.01 trillion that someone else must have bought over those 12 months.

But who? Mostly American institutional and individual investors, directly and indirectly, through bond funds, pension funds, and other ways.

Yields have risen over the past 12 months, and these “risk free” Treasury yields are now competitive with the average S&P 500 dividend yield.

For yield investors, Treasuries are a way to lower their risk profile, while earning higher yields than two years ago. In other words, for many American investors, rising yields have made Treasuries attractive.

DYI:  No doubt about it for yield conscience investors – basic compounder’s – high grade treasuries are an excellent tool. Whether going to Treasury Direct, Savings Bonds, or Treasury bond funds the likes of Vanguard’s list of low cost funds is an excellent savings tool.  DYI’s model portfolio finally began purchasing a small position on the long end of the market.  Hopefully rates will at least normalize so once again basic savers and retirees who depend upon interest from their CD’s at the Bank will be rewarded for their efforts.

DYI