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What If: Ultralong T-Bonds

Posted: Sun Apr 13, 2014 5:35 am
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?

Re: What If: Ultralong T-Bonds

Posted: Thu May 22, 2014 5:18 am
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.

Re: What If: Ultralong T-Bonds

Posted: Sun Jun 01, 2014 7:46 am
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