Invest in U.S. bonds before rates turn negative?

hank

Can't help noticing yield on 10 year Treasury well below 2% this morning. Another couple % down would put em in negative territory meaning you'd have to pay Uncle Sam for privilege of giving him your money for 10 years. For die-hard bond investors then, it might be better to grab these returns now while they still positive. Apparently lota folk are doing so today.

Now, if a sub-AAA rating troubles you, be aware some local govts in the USA still possess AAA rating from all 3 major agencies, Linked reference to one being Prince George's County.

http://www.washingtonpost.com/local/pr-georges-retains-aaa-bond-rating/2011/09/01/gIQApKwUvJ_story.html

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hank

From this chart it appears inflation indexed 5 & 7 year already negative. Other stuff is within a whisker.

Only matter of time before some money funds shut down or start charging investors to be in them. Considering maintenance fees, etc. that's already the case with many.

http://www.federalreserve.gov/Releases/h15/update/