(as I understand it, and I could be wrong... and if so, please correct me) The difference between the 10 year and 3 month bonds - https://ycharts.com/indicator

(as I understand it, and I could be wrong... and if so, please correct me) The difference between the 10 year and 3 month bonds - https://ycharts.com/indicators/10_year_3_month_treasury_spread https://ycharts.com/indicators/10_year_3_month_treasury_spre... You'll note that you can get more money buy buying a 3 month bond rather than a 10 year bond. So, now if you want to sell a 10 year $100 bond, you'll need to sell it for less than what a 3 month $100 bond costs to buy... which is $100. https://ycharts.com/indicators/3_month_t_bill https://ycharts.com/indicators/3_month_t_bill (look at 3 year chart range) and https://ycharts.com/indicators/10_year_treasury_rate https://ycharts.com/indicators/10_year_treasury_rate (again, look at 3 year range). The 10 year $100 bond is still going to pay out at a profit... in 10 years. But there's more valuable things that one can do with $100 in the shorter term so any sales of that before it pays out will be done at a loss.