According to yahoo finance https://finance.yahoo.com/quote/BND?p=BND&.tsrc=fin-srch-v1 BND is down 1.81% on the year and is currently yielding 2.63% BND has an avg duration of over 6 years so there is some interest rate risk here.
short term 1 year tbills have rapidly risen in yield and currently yield ~ 2.4%. 6mo tbills yield ~ 2.1%. For comparison in January 2015 the yield was .25% on 1 year tbill https://ycharts.com/indicators/1_year_treasury_rate so it is very recent that tbills have become a viable alternative to bond funds.
It seems attractive right now to place 100% of bond investments into individually purchased tbills ranging from 6mo to 1year maturities. 0 risk of losing my money with a yield almost as good as BND. Plus the upside of being able to reinvest matured bonds back into tbills if short end rates keep going higher like this.
Am i missing something here or is it a no brainer to go with tbills?
Submitted July 29, 2018 at 05:33PM by panchilly https://ift.tt/2mQKubB
