‘5% Treasurys’ - but where

[Jam1]

All, seeing news headings (US), some behind paywalls, that dividend stocks have new competition - cash, and that stocks will find it hard to beat 5% treasurys. I can see a US ‘BSV Vanguard short term bond etf’ with a 4.8% (30 day trailing) yield but is there a UK variant? The UK equivalent yields are half that of the US treasurys as stated on the UK Vanguard site? Apologies, but is the idea of 5% safe bonds available to individual investors too good to be true?
Thank you
Jam (tomorrow)

[GeoffF100]

Here are the numbers for BSV Vanguard short term bond etf:

https://investor.vanguard.com/investmen ... omposition

The yield to maturity is 4.3%. It invests in investment grade government and corporate bonds. Here is a UK equivalent OEIC:

https://investor.vanguard.com/investmen ... omposition

Yield to maturity is 4.7%, so that is a little more than the US fund.

[GeoffF100]

Those funds are paying a historically small premium over lending your money to the government. Is it worth the extra risk? Interest rates could come down more slowly than the market predicts. You would then be better off with cash or shorter dated debt. Are you happy with that risk?

[GeoffF100]

If you want to lend your money to the government, you will find the numbers here:

https://reports.tradeweb.com/account/login/

Here is an explanation of how the gilt market works:

https://www.dmo.gov.uk/responsibilities/gilt-market/

There are also many gilt funds available.

[Jam1]

Thanks Geoff, will take a look…. But might have some decent yields on HYP shares/ITs by end of the week!