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There was a relatively large upward movement in yields today (and corresponding downward movement in price).

I bought a few with cash on hand in the retirement and college savings accounts.

From Google Finance:

  Bonds [yields]
  3 Month	0.42%	+0.02 (5.00%)
  6 Month	0.53%	+0.03 (6.00%)
  2 Year	0.90%	+0.07 (8.43%)
  5 Year	1.48%	+0.12 (8.82%)
  10 Year	2.07%	+0.12 (6.15%)
  30 Year	2.86%	+0.10 (3.62%)


This is actually much more indicative of the economic direction the market thinks we will be headed in. Hint: it's not good.

The bond market is extraordinarily efficient at pricing risk, and right now, they're beginning to price a significant risk of a long-term US default.


So buyers of these things think interest rates will be lower in the future (eg due to poor economy and further stimulus perhaps?)


Yes, or at least as insurance in case interest do go lower.




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