Why cash is 'an obvious competitor' to US high yield

Suitable for $ investors

Much gnashing of teeth has accompanied the 10-year Treasury yield through the psychological 3% mark recently, but there is a far more important number in financial markets to watch - and it is a relatively less exciting 2.5%.

While the 10-year reaching its highest yield since 2014 has garnered much media attention, it is the yield on the two-year (effectively a cash proxy at 2.49% - the highest since August 2008) that may have greater implications for all financial assets. For a decade, central bank policy globally has made cash so unattractive that investors chased risk in all its forms, supporting higher valuations in bonds, credit, equities, property and cryptocurrencies.  US Treasuries at 3%: Time to reconsider fixed income allocations Suddenly, cash is back (at least in US dollars) and is a viable ...