Traders,

As reflected by the 10-year and 30-year bond yields, long-term interest rates have retreated considerably from their October highs. The 10-year yield has fallen from 4.33% to 3.4%. It’s as if Wall Street has sniffed out the peak in the Fed Funds rate and is now starting to price in the seemingly inevitable decline.

But do you know what hasn’t gone down? Short-term rates! And that means the yield in Treasury Bills is still beefy. Fortunately, you can tap into the higher-than-average risk-free returns in your brokerage account by buying T-bill ETFs such as the S&P Bloomberg 1-3 Month T-Bill ETF. It trades under the ticker BIL and pays a monthly dividend, creating a rate of return that should closely resemble the T-bill yield. As yields have leaped higher, so has the monthly dividend in BIL. $50k in BIL paid out $76 in September, $85 in October, $114 in November, and $143 in December.

If you’re sitting on a modest amount of cash in your trading account between trades and want to boost the return while the money is sitting idle, consider BIL and its various equivalents.

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Video Of The Day: Jedi Options – SPY PUT Calendar Hedge

In today’s Jedi Options, Coach Tyler talks about SPY PUT Calendar Hedge

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Chart of the Day: S&P Bloomberg 1-3 Month T-bill ETF ($BIL)

BIL is super stable. It rises and falls slightly each month as it prices in and pays out dividends.

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