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Moving from tlt to ltt

Posted: Wed Mar 27, 2013 6:41 pm
by Cyclinginmaryland
Hi

I'm new to the pp theory and am in the process of implementing the portfolio

I'm considering moving from tlt to 30 year treasuries purchased thru my schwab account

In talking to the bond desk today, a basic question arises , should I but the cheapest lowest yield treasury I can or buy one closer to par at today's rates ?

I'm thinking cheaper is better as I won't hold these for more then 3 to 5 years ?

Or should I hold off doing anything now based on the current rates

Thanks very much

Re: Moving from tlt to ltt

Posted: Wed Mar 27, 2013 7:27 pm
by escafandro
Buy the one with the longest maturity.
And the time you have to hold it is 10 years.

Re: Moving from tlt to ltt

Posted: Thu Mar 28, 2013 1:53 am
by Tortoise
Agreed. Buying the bond with the longest maturity is the simplest and gives you the most volatility, which is what you want.