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30 years treasury bonds

date: 2023-04-06

30 years treasury bonds is a very useful investment tool. but it's counterintuitive because of usually bonds return rate is low at 3%-5%, but long term bonds not, cause of the face value, coupon rate, bond price math magic, the yield decrease 1%, and the bond price will increase near 30%.

The calulation is simple, here is a example case:

this is the power of long term bonds math, if we expect interest rate will decrease 1%, we will get 30% return of our invest.

who buy bonds

Because of safety and security of US treasury bonds, there is widly investors buy it, roughly proportion is:

how they buy bonds

basic principle:

so all origin driving force is demands of market. what will influce market demands?

what will influence bonds demands?


but, need to be metioned, market is complicated, not single dimensional, you should carefully consider the relations, likes when Ukriane-russian war started, yields not goes down but goes up, because its is in high inflation time, and the war make infation more worst.

what will long-term bonds directly impact

bonds demands supply cruve