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Personal Finance and Investing

bucolic_frolic

(50,522 posts)

4. You would also know that Treasury Direct is not an open market price. It's at issue.

Reply to mahatmakanejeeves (Reply #3)

Sun May 4, 2025, 01:21 PM

May 4

TreasuryDirect Sells fixed rate bonds at public auction

Prices are based on current yields at time of purchase.

If you bought a 30-year bond in 2020 from TreasuryDirect yielding 1.2%, that bond today would also be worth ~50% less if sold on the market.

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Individual bonds have to be held to maturity to regain the face value. If you sold it in the open market, you would get far less because interest rates have risen.

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Fertile crop of investing guru advice this weekend. [View all] bucolic_frolic May 4 OP

Bond prices have fallen by 50 percent since 2020? I have my doubts. NT mahatmakanejeeves May 4 #1

Well, ChatGPT concurs on the 50% decline. Look at the TLT chart. bucolic_frolic May 4 #2

Oh, an ETF, not the bonds themselves. mahatmakanejeeves May 4 #3

You would also know that Treasury Direct is not an open market price. It's at issue. bucolic_frolic May 4 #4

Thanks. I don't know who publishes those prices anymore, for mahatmakanejeeves May 4 #5

And that doesn't take into account the PURCHASING POWER of the bonds, which have fallen by even more progree May 4 #6

And even that is optimistic if you're buying a new car or a new roof! bucolic_frolic May 4 #7