“In that case, deposits directly with the treasury makes more sense”
That’s what many investors are doing right now and there may well be a bubble in Treasury paper. If interest rates go up, and there’s reason to think that they will by March, then that Treasury bubble could pop. Just be aware that Treasuries aren’t risk free.
That’s where it gets confusing. How can bonds be in a bubble? The rates are so low as to be meaningless. I opened a TD account several years ago just so it would be set up. Last year I bought a 4 week bill with 100 dollars. Netted a whole 1 cent! Yeehaw.
I want to (I think) have flexibility to buy longer term notes or bonds if and when interest rates rise, so have some in short term obligations or, CofI zero per cent.