What If: Ultralong T-Bonds

Discussion of the Bond portion of the Permanent Portfolio

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Stewardship
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What If: Ultralong T-Bonds

Post by Stewardship »

What if the U.S. Treasury started selling 40-year T-Bonds?  50-year? 100?

Would 30-year bonds still be the most appropriate for the PP bond allocation?

Or could it benefit from the increased volatility and higher yields of a longer-dated T-bond?
In a world of ever-increasing financial intangibility and government imposition, I tend to expect otherwise.
PPTrader

Re: What If: Ultralong T-Bonds

Post by PPTrader »

I don't know the answer, but if anyone has put together a spreadsheet for a PP in the UK they might be able to get an idea by using British Consols for the bond portion.  These are perpetual bonds originally issued by the British government in the 1700's.  Since this is as long as you could go on a bond it seems like a good place to start.
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MachineGhost
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Re: What If: Ultralong T-Bonds

Post by MachineGhost »

Stewardship wrote: What if the U.S. Treasury started selling 40-year T-Bonds?  50-year? 100?

Would 30-year bonds still be the most appropriate for the PP bond allocation?

Or could it benefit from the increased volatility and higher yields of a longer-dated T-bond?
I would say a 50-year bond would be: http://gyroscopicinvesting.com/forum/pe ... /#msg96254
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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