Stocks, Treasuries lead US household wealth to 1-year high in early 2023

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Key Points

June 8 (Reuters) - U.S. household wealth climbed to the highest in a year in the first three months of 2023, led by the stock market's recovery from last year's bear market and mushrooming appetite for high-yielding U.S. government bonds, data from the Federal Reserve on Thursday showed...

Household net worth rose by more than $3 trillion in the first quarter to $148.8 trillion, with holdings of equities increasing by about $2.4 trillion, more than offsetting a $600 billion decline in real estate values, the Fed said...

Perhaps most notably, the resurgence in wealth was also aided by a record increase in the value of households' holdings of debt securities - with a nearly $550 billion increase in Treasuries leading the way...

The sum of household bank deposits and money market mutual fund holdings declined by about $115 billion to $17.76 trillion, the lowest since the third quarter of 2021...

"We know from the weekly banking data that the outflow of deposits has since stabilized, but the higher interest rates available on Treasury bills and money market accounts will still incentivize a gradual shift out of banking deposits over the coming year," Oxford Economics Lead U.S. Economist Michael Pearce wrote in a note...

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