Treasury Secretary Janet Yellen told Congress the U.S. could default as early as June 1, giving lawmakers less than a month to raise the debt limit and avoid a catastrophic default. This news is causing many investors to consider low-risk investments, such as U.S. Treasury securities.
If you're seeking low-risk investments, your first choice should always be U.S. Treasury securities. Backed by the full faith and credit of the United States government, these securities are considered the safest investments in the world. U.S. Treasury bills, known as T-bills, are a popular way for investors to generate low-risk income without locking up their cash for the long term.
Bill Gross, the former chief investment officer of Pacific Investment Management Co., recommended buying short-term Treasury bills, saying, "Don't worry, buy short-dated Treasury bills." Short-term T-bills are less sensitive to interest rate changes than longer-term bonds, making them a good choice for investors looking for stability.
There are two common ways to buy individual Treasury securities: From TreasuryDirect, the official U.S. Department of the Treasury website, or through a brokerage firm. TreasuryDirect is a free service that allows investors to purchase and manage Treasury securities directly from the government. Brokerage firms charge a fee for their services, but they can provide more personalized advice and assistance.
Some Treasury bills, or T-bills, are now paying 5% after a series of interest rate hikes from the Federal Reserve. You can buy T-bills with maturities ranging from a few days to up to a year, depending on your investment goals. Short-term T-bills are generally considered the safest, while longer-term T-bills offer higher yields but more risk.
Recently, Treasury bills — or T-bills, as they're also referred to — are having a bit of a revival. This is largely due to their low-risk nature and the current economic climate. As interest rates rise, T-bills become more attractive to investors looking for safe, stable returns.
Treasury bills, or T-bills, are short-term debt obligations backed by the U.S. Treasury Department, and they're a good, safe bet. They're considered one of the safest investments in the world, making them a popular choice for risk-averse investors. With low yields on other investments, T-bills are an attractive option for investors looking for low-risk income.
