Short-term investors are feeling the pinch in the Federal Reserve's fight against inflation.
According to the April "Strategic Liquidity Solutions" report from Insight Investment, liquidity in markets for short-term investments decreased substantially in the first quarter of 2022. Moreover, total returns on short-term investment strategies were negative through March, as markets priced in changing interest rate expectations.
"The ultra-low starting point in yields compounded the effect, leading to the worst bond market performance in decades," says the report.
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