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.