Money in Motion in a New Rate Regime: The Highest Yielding Treasury Security

With rate cuts now definitively expected by the bond market for the September FOMC meeting, some perspective is in order. In the third installment of the Money in Motion series, Kevin Flanagan discusses the implications of the new rate regime in U.S. Treasury yields and highlights the advantages of floating rate notes in this investment landscape.

Basis Point: 1/100th of a percent

Treasury yield: The return on investment, expressed as a percentage, on the debt obligations of the U.S. government.