…High headline yields are fading. The real trade is what you lock in next.
The trade looks obvious. It isn’t.
Money market funds are printing annualised yields in the high teens to low twenties. Treasury bills are slightly lower than earlier in the year. On the surface, the choice is simple. Follow the higher number.
That instinct is understandable. It is also backward-looking.
The question is not which asset is yielding more today. It is which one preserves return as rates begin to move.
Signals from the Central Bank of
