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5% isn't possible, but you can make over 2% on treasury bills currently. The risk of the US government defaulting on loans can be essentially ignored.
by Thorrez 8y ago
5% isn't possible, but you can make over 2% on treasury bills currently. The risk of the US government defaulting on loans can be essentially ignored.
- dmix 8y agoThis might be a dumb question but can you sell a treasury bond to a 3rd party before the terms are over without losing too much money?
- Canada 8y agoYes, they are completely liquid.
- rags2riches 8y agoYou can sell them before maturity, but their value will depend on current interest rates, of course. If rates are up, you will have to discount the price.
- Thorrez 8y agoThis might not be exactly answering your question, but you can buy 4 week treasury bills. Even if you can't sell bonds, having money tied up for 4 weeks might not be a big problem.
- londons_explore 8y agoExcept in the crypto industry, where US bonds are likely to be seized, and therefore probably have an average payout rate below parity.
- Thorrez 8y agoDo you have any information about US bonds being seized like this? I don't understand how it could happen.
- tcgv 8y agoExactly. And even if the US government were to default on loans Theter would be the least of your concerns since the USD and consequently the global economy would be in a pretty bad shape.