With Treasuries paying over 5%, does sitting in cash feel more attractive than trading? How does that change your risk?

On 2 October, Treasury's par yield curve rates showed the 10-year at 5.28% and the 2-year at 4.83%, and even 3-month bills at 4.19%. The 10-year closed at 5.29% on 30 September, its highest since May 2002 (full report). The Fed's target range is 3.75%–4.00% (report).

For a trader, a risk-free return above 4% for short maturities changes the comparison. Money held in a trading account can sit idle, and the opportunity cost of not being in the market is lower than when short-term rates were near zero. That can pull in two directions psychologically: some people feel less pressure to trade because waiting pays, while others feel more pressure to justify the risk of trading against an easy alternative.

We would like members to be candid about it:

• Has a 4% to 5% risk-free rate changed how much you trade, how much capital you keep in your account, or how much risk you take per trade?
• Does it make "doing nothing" feel more acceptable on days without a clear setup?
• Do you compare your trading results to what the same money would have earned in Treasury bills, and does that comparison help or hurt?
• Has the higher-rate environment made you more patient, more demanding of your own edge, or more tempted to chase?

If you keep a journal, noting your emotional state alongside results can show patterns (how to keep a trading journal).

Please keep replies to your own experience. Posts that promise returns or sell signals will be removed.