If inflation happens, the 30-year bond will likely rise with inflation: maybe 3% or 4%. It is better to store your cash today, than to "lock in" to 2.2% APY.
Next month, if inflation starts to kick in, maybe you'll get 3% over the next 30 years instead of 2.2% over the next 30 years.
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Obviously, a 30-year bond is 'different' than cash. However, when you start looking at 6-months, 3-months, 1-month, and overnight lending rates... things look more-and-more like cash.
No one ever holds "cash" per se, its always better to lend it out (even for only 1 day, you wanna have that cash generate more cash). By betting on shorter timescales (ex: 1-month), you're really betting that the longer-time scale bonds (ex: a 30-year) will rise up.
If inflation happens, the 30-year bond will likely rise with inflation: maybe 3% or 4%. It is better to store your cash today, than to "lock in" to 2.2% APY.
Next month, if inflation starts to kick in, maybe you'll get 3% over the next 30 years instead of 2.2% over the next 30 years.
-----------
Obviously, a 30-year bond is 'different' than cash. However, when you start looking at 6-months, 3-months, 1-month, and overnight lending rates... things look more-and-more like cash.
No one ever holds "cash" per se, its always better to lend it out (even for only 1 day, you wanna have that cash generate more cash). By betting on shorter timescales (ex: 1-month), you're really betting that the longer-time scale bonds (ex: a 30-year) will rise up.