10 High-Yield CDs With APYs Above 5% Offer Savers Superior Returns Over Treasuries
Portfolio Pulse from Piero Cingari
Bankrate's data reveals that the average 1-year CD APY has reached 5.27%, outperforming the yield on 2-year Treasury bonds and short-term bond ETFs like iShares 1-3 Year Treasury Bond ETF (SHY). This increase in CD rates is a result of the Federal Reserve's rate hikes since March 2022. The article lists 10 high-yield CDs from various institutions, with APYs ranging from 5.25% to 5.67% for 1-year terms, surpassing traditional low-risk investments.
November 29, 2023 | 5:13 pm
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The iShares 1-3 Year Treasury Bond ETF (SHY) may face reduced demand as investors opt for high-yield CDs offering better returns, as indicated by Bankrate's data showing 1-year CD APYs surpassing the yield on 2-year Treasury bonds.
The article suggests that CDs are becoming more attractive to investors due to higher yields compared to Treasury bonds and related ETFs like SHY. This could lead to a short-term negative impact on SHY as investors might reallocate funds to take advantage of the higher CD rates.
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