For the debtor or the creditor? For the creditor the right level is 0 or short. Maybe if you are close to retirement and you strongly value stability over growt

For the debtor or the creditor? For the creditor the right level is 0 or short. Maybe if you are close to retirement and you strongly value stability over growth it has a role. There is some nuance here for large complicated portfolios but for most people the answer is don't be holding treasuries, don't be a creditor. For the debtor the answer may be, as much as possible. If I can get at 3% loan with 7% interest that is the deal of the century. I'm getting a negative real risk premium on a return yielding asset. Right now treasuries are reward free risk. A mortgage is low risk high reward.