Monday, October 19, 2009

On the Attractiveness of Treasuries

The Bad
The ten year treasury bond is yielding 3.4%.

The Good

That yield is 4.7% above the latest year over year CPI print, the highest level in 25 years.



So, are longer dated Treasuries a good investment? Depends on your outlook for interest rates and inflation. That measly 3.4% is still 140 bps higher than December lows should this "rebound" not be all its cracked up to be.

Source: Yahoo / BLS