PFBlog logo

My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

  Home | Feed: feed-icon.gif | About | Progress: June 07: $756,924 | Best of PFBlog | Product Reviews | PFBlog Digest | Disclaimer | Advertise | Contact Me

...

Return of the 30-Year Bond





It is fair to say trasury is an opportunist. Think about it's reversal of the 30-year bond and the redefinition of EE-series Savings Bonds.

From Wall Street Journal:

Wall Street pros pushed hard to bring back the 30-year Treasury bond. The effort paid off: The U.S. Treasury announced last week it will resume sales of the 30-year bond in early 2006 after a four-year hiatus.

But for individual investors, news of the relaunch isn't much to cheer about. On its own, the so-called long bond doesn't necessarily provide an attractive return for the amount of risk investors would be assuming, especially since interest rates are expected to keep rising, financial advisers say.

Historically, the added risk an investor takes with bonds with maturities of more than 20 years isn't worthwhile, adds Kirk Kinder, a financial planner with Financial Guidance Group in Palm Harbor, Fla. "If rates were expected to come down, it would be a good investment," Mr. Kinder says. "But with such a low-rate environment right now, you're taking on a lot of risk. I would caution people against it."

What do you think of this post? Be the first to share your opinions.

Enjoy the latest personal finance news and commentary at PFBlog Network.
Similar Posts

Spring Training for Value Investors (August 19, 2005)
The story is more than one year old, but it contains an awful lot of links to value investors' must-read literatures.
Slice of Pi: New Google Mystery Centers on $4 Billion Share Sale (August 19, 2005)
It's reasonable to capitalize the hefty price for the benefit of current shareholders. Plus, the Pi mystery is cool!
PowerShares ETF Gives Its Holders Additional Control (August 10, 2005)
I don't think this ETF offers value over traditional mutual funds.
China Discloses Composition Of Yuan Currency Basket (August 10, 2005)
Not much information with the weighting, but it is better than nothing.

Read all 58 articles in the same category.

Read More ... All Other Posts In The Same Category

PREMIUM SPONSORS

Car Loans
Dallas Bankruptcy Attorney
Personal Loans
Car Finance
Homeowner Loans
Cheap Car Insurance
Mortgages UK & CCJ Mortgage
Used Cars
Loans
Commercial Mortgages and Business Loans
Guaranteed Car Finance
Payday Loan
Personal Loan
Student Loan Consolidation.com
Secured Loans
Bad Credit Loans - Free Quote