In the recent months, foreign and domestic investors alike have been stocking up on long-term U.S. treasury bills in record numbers, causing a 19.9% surge in the prices of the treasury bills in a single month. (If you’re not sure why that percentage is so significant, you can find more information in my article called “Long-term U.S. Treasury Bonds: Are They Worth the Risk?”)

The yield of return on these long-term bonds has plummeted as the purchase price climbs. In fact, we recently saw a rock bottom rate of 2.67%. We haven’t reached rates that low in over 50 years!

Some experts caution against the purchase of long-term bonds, however. Dan Seiver, a finance professor at San Diego State University, believes that the forecasted rate of inflation over the next 30 years will not exceed the rate of return on the bonds, leaving investors with little to no return on their investment.

If you’d like to learn more, you can find my “Long-Term U.S. Treasury Bonds” article on my website.

Tags: investing, investing capital, investment options, Ron Wellman, U.S. treasury bonds