How to add Treasurys to your portfolio
If you’ve decided that you want Treasurys, your next decision may be what kind of Treasurys to buy. As with other types of bonds, one of the most important differences among the various types of bonds is the length of time before they mature. Typically, bonds with longer maturities pay higher yields as compensation for the fact that they lock up your cash for a longer period of time. Over the past 2 years, shorter-term Treasurys have been paying higher yields than longer-term bonds, but that unusual situation appears to be changing.
Richard Carter, Vice President for Fixed Income Products and Services explains, “We appear to be returning to the normal situation where you can receive a relatively higher yield for longer-term maturities than shorter ones. This normalization could result from either short-term yields falling or long-term yields…
