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> When you see a persistent yield curve inversion, buy the longest maturity treasuries you can find. For example, 30 years. > This is counterintuitive because
by Bromskloss 8y ago
> When you see a persistent yield curve inversion, buy the longest maturity treasuries you can find. For example, 30 years.
> This is counterintuitive because shorter maturities (2, 5 years) will yield more when you make your purchase. However, your capital gains will likely compensate for missed yield after the recession has run its course and return a tidy profit.
Sorry, could you flesh out the details here? You buy treasuries with a long maturity. What is expected to happen with them after that, and after how long?