One Hundred Dollars?


If only US Treasuries came with this kind of warning label.  Poor time to be buying longer duration USTs (loaning money to the government); on the flip side, it is a GREAT time for the US Gov. to borrow money / refinance their debts.  Keep in mind, over the long haul the 10 year UST averaged about a 5% yield (with some pretty massive swings).  Even if rates get halfway to their long term average you’re looking at an 8% discount to par.  Pretty lousy returns for what is widely viewed as a “risk free” asset.

Source: WSJ


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