Why You Might Want to Buy Longer Duration Treasury Bonds

If inflation does roll over in the next one to two years, you're going to be sitting pretty with a three-year treasury bond yielding 4.4%. And here's an argument for why you might want to buy even longer duration treasury bonds in five years, 10 years, 20 years, also yielding over 4%. Because of future expected returns, we know in a previous episode and in a previous post how I discussed lower future expected returns from Vanguard and other investment houses. But what I do know is that getting a 4% plus risk free rate return without having to pay state taxes is attractive. The biggest hurdle we have to overcome is probably greed and slashing hope.