*** Urgent Message from Bond Tr4der!

Ivan, I doubt the return on a t-bill covers the rate of inflation. So I too wonder if they are safe. lol

My local bank offered a better 3-month CD rate.
 
Quote from Ivanovich:

So no answer?
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If a short duration treasury fund there is a risk a loss if things get back to normal and risk aversion subsides as they will sell off hard as money leaves for better returns. If you think things are going to get worse before they get better then this fund should do well or at least hold its value. If long duration treasuries then fund may lose value as the fed cuts and inflation panic sets in. Who wants to own a 30 year bond anywhere near 4 or 5% with inflation ramping.
 
What do you guys think of buying muni Auction rate securities with underlying A+ and resetting at 8-15% at auction. These auctions are not failing, just setting high. I got 50k of LA MTA at 10% or 12% last week. They have an underlying AAA. So wjhat if they refi?
 
Quote from bond tr4der:

The 30-year and long-term treasury bonds have peaked. They're gonna collapse hard within the next six months. Munis and corporate bonds are gonna a rude awakening tring to raise funds in the future.
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I dunno about the long-term treasury bonds crashing, but yields on corp and municipals did indeed rise. Nice call!
 
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