Treasury bonds are a US Government Bond. People buy them to have a safer bond that generates income. They will not generate as much income as a high yield corporate bond but they are less risky to own.
If bond px's (prices) are inversely related to interest rates then if interest rates are at their lowest point in recent history (or close to it) think about selling your bonds for a gain rather than holding on to them and lose out on that extra potential money when bond prices start to fall. There are other safe investments out there why lose out. Then if you really want treasuries why not buy back in when the prices come back down. We are not doing Quantitative Easing (or QE) forever (we are on QE3 right now).
When interest rates start to rise fixed income (or all bonds not just treasury bonds) prices should fall. Just think about another possibility other than buy and hold.
I'm not saying this is the only way nor am I advising you to do this. I'm just saying think of ways that you can make the most of your investments and consider more options that may be available to you.
Quant easing
Yeild
Investopedia explains the inverse relationship between interest rates and bond px's
If bond px's (prices) are inversely related to interest rates then if interest rates are at their lowest point in recent history (or close to it) think about selling your bonds for a gain rather than holding on to them and lose out on that extra potential money when bond prices start to fall. There are other safe investments out there why lose out. Then if you really want treasuries why not buy back in when the prices come back down. We are not doing Quantitative Easing (or QE) forever (we are on QE3 right now).
When interest rates start to rise fixed income (or all bonds not just treasury bonds) prices should fall. Just think about another possibility other than buy and hold.
I'm not saying this is the only way nor am I advising you to do this. I'm just saying think of ways that you can make the most of your investments and consider more options that may be available to you.
Quant easing
Yeild
Investopedia explains the inverse relationship between interest rates and bond px's
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