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.
” How can bonds be in a bubble? The rates are so low as to be meaningless.”
Investors are seeing bonds as having no risk and they are bidding them up, which results in low yields. Bonds have interest rate risk. If interest rates spike up then the price of low-yielding bonds will fall. Long bonds are subject to greater interest rate risk than short paper. Stick to short paper right now and you will be okay. The time to buy long bonds is when interest rates are high.