(Bloomberg) — For the first time in nearly a generation, fixed income is living up to its name.
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This, at a certain level, is simply the consequence of benchmark rates in the US jumping from 0% to over 5% in a span of two years.
But at a time when all of Wall Street seems fixated on whether the Federal Reserve will actually cut interest rates this year — and heated arguments break out over whether the 10-year US bond should yield, say, 4.5% or 4.65% — it’s easy to lose sight of one important fact: That after being held hostage by zero-rate policies for almost two decades, US Treasuries are finally reverting back to their traditional role in the economy.
That is, as a source of income that investors can lock in and rely on, year after year, for years to come — regardless of where yields are at any given moment.
The numbers tell the story. Last year, investors pocketed nearly $900 billion in annual interest…
