For a couple of years now, it has been harder to find strong yields in fixed-income securities. Since cash yields reached their cyclical peaks in late 2023 and early 2024, annual percentage yields (APYs) on cash alternatives like certificates of deposit (CDs) and high-yield savings accounts have generally moved lower, even as bond yields remain volatile.
And while the Federal Reserve’s July FOMC meeting is still weeks away, income investors hoping that an uptick in inflation will be enough to motivate the central bank to hike rates shouldn’t hold their breath. According to the CME Group’s FedWatch Tool, the probability of the Fed maintaining its benchmark interest rate in the 350–375 basis point range is more than 73%.
