Rising yields: Time to invest in funds that hold US treasury bonds and at what maturity?

Hello Mooers!

Predicting the future outlook for the US treasury bonds can be challenging as it depends on various factors such as the inflation, economic conditions, global factors, the Fed's monetary policy decisions and many others.

Although in the past few months, inflation has been showing signs of retreating, and coupled with the strong resilience of the US economy, it does however not mean that interest rate will be falling soon as other key factors such as international events and geopolitical tensions can continue to drive up inflation, thus impacting the demand for US treasury bonds.

As for whether short or long term bond that one should choose at this moment, I would prefer bonds with a maturity period of 5 years or less. This is because they are less sensitive to interest rate changes when compared to those with a longer maturity.

Also, short term bonds tend to have an edge over their long term counterparts as short term bonds mature relatively quickly and allow investors to either reinvest in new short term bonds or into other investments such as stocks or commodities.

However, investors may lose out on the higher yields typically offered by long term bonds and so it is important for investors to consider their investment objectives and risk tolerance carefully before deciding which bond to invest in.

To summarize, adding US treasury bonds would provide investors a cushion during uncertain times, as well as the extremely low likelihood of default offered by them.

Hmm... I wonder how Mooers prefer their bond maturity to be of how long.