Buy any T bond with mat over 20 years or just those near 30 year mat?

Discussion of the Bond portion of the Permanent Portfolio

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fred9

Buy any T bond with mat over 20 years or just those near 30 year mat?

Post by fred9 » Mon May 31, 2010 5:34 pm

Yes, I'm a newbie. I have a Vanguard brokerage account and I see I can buy T bonds with various maturity dates. The yield difference is minor but what should I be doing as "true follower" of PP? :)

Thanks
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craigr
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Re: Buy any T bond with mat over 20 years or just those near 30 year mat?

Post by craigr » Mon May 31, 2010 5:38 pm

Anything in the 25-30 year range is fine. Once they get down to 20 years left to maturity you roll them out and buy some more 25-30 year replacements. For instance I have a bond ladder with various maturities as new bonds have been bought over the years. Maturity ranges are between 24-29 years now as some had been rebalanced out and newer ones rebalanced back in.

The biggest thing really is that they be US Treasury bonds for US investors and you want the maturity more than 20 years to provide enough power for deflation protection.
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craigr
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Re: Buy any T bond with mat over 20 years or just those near 30 year mat?

Post by craigr » Mon May 31, 2010 6:33 pm

I'm not familiar with undated treasuries so I really can't say. I haven't done any research into that asset.
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