One of the top financial stories in 2023 so far is the hot bond market. But it’s not just true for institutional investors, retail traders are also piling into bonds. One reason for this is that it has never been easier to buy Treasuries. They can be bought directly from the Treasury Department, at discount brokerages, or accessed through ETFs. It is also due to a huge shift in fixed income as rate expectations have sent yields on bonds to their highest in years. The 2-year, 10-year, and 30-year treasuries are all yielding around 4%. In fact, retail traders are so honed in on buying bonds, they've crashed the TreasuryDirect website repeatedly. Shawn Cruz, Head Trading Strategist at TD Ameritrade, recently told Yahoo Finance that “For pretty much the entire decade, leading up to this year, when people asked about retail and fixed income, I could just simply say, ‘no one really cares.’ The past year, that has significantly changed.” Sales of Treasury bills with maturities of one year or less through TreasuryDirect were $12.0 billion in January, a new record. BlackRock, the largest provider of ETFs by assets, has also benefited from this boom. So far in 2023, investors have poured $9.9 billion into U.S. iShares fixed-income ETFs.

Finsum:Retail traders are piling into bonds this year due to easier access to Treasuries and the highest bond yields in years.