{"id":10091,"date":"2020-12-02T05:22:13","date_gmt":"2020-12-02T10:22:13","guid":{"rendered":"http:\/\/staging-prblog.paladinregistry.com\/blog\/?p=10091"},"modified":"2025-05-08T02:58:53","modified_gmt":"2025-05-08T06:58:53","slug":"should-you-hold-or-sell-your-long-term-u-s-government-bonds","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/","title":{"rendered":"Should You Hold Or Sell Your Long-Term U.S. Government Bonds?"},"content":{"rendered":"\n<p>The Pandemic and the ensuing Fed actions to revive the market by easing liquidity has pushed the yield of the benchmark 10-year Treasury bonds to near record lows; yield as of October 2020 is at a measly 0.7%. Meanwhile, the price of the bonds in the open markets surged due to their inverse correlation to the yield, tempting investors to sell their bond holdings. With the Fed vowing to pin its interest rate near zero until at least 2023, it becomes essential for us to understand, rethink, and replan one&#8217;s bond investment options.  The following information is to help you get a better understanding and reach an informed decision regarding your portfolio holdings of U.S. Government Bonds. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_68_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dfdcc694a12\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dfdcc694a12\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#1_Understanding_Bonds\" title=\"1. Understanding Bonds\">1. Understanding Bonds<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#a_What_are_government_bonds\" title=\"a. What are government bonds?\">a. What are government bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#b_How_do_government_bonds_work\" title=\"b. How do government bonds work?\">b. How do government bonds work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#c_Risks_associated_with_bonds\" title=\"c. Risks associated with bonds\">c. Risks associated with bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#d_Advantages_of_investing_in_government_bonds\" title=\"d. Advantages of investing in government bonds\">d. Advantages of investing in government bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#e_Disadvantages_of_investing_in_government_bonds\" title=\"e. Disadvantages of investing in government bonds\">e. Disadvantages of investing in government bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#What_caused_the_volatility\" title=\"What caused the volatility?\">What caused the volatility?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#4_Should_you_continue_to_hold_bonds_in_the_future\" title=\"4. Should you continue to hold bonds in the future?\">4. Should you continue to hold bonds in the future?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#5_Conclusion\" title=\"5. Conclusion\">5. Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-hold-or-sell-your-long-term-u-s-government-bonds\/#About_Dash_Investments\" title=\"About Dash Investments\">About Dash Investments<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Understanding_Bonds\"><\/span>1. <strong>Understanding Bonds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"a_What_are_government_bonds\"><\/span>a. <strong>What are government bonds?<\/strong> <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A government bond is a\ndebt-based investment, where you&#8217;re basically loaning your money to the federal\ngovernment. In return, you get periodic interest at a predetermined rate and\nthe promise of repayment of the bond&#8217;s face value on the maturity date. The\ngovernment utilizes the money raised to fund projects and infrastructure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"b_How_do_government_bonds_work\"><\/span>b. <strong>How do government bonds work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When you invest in\nsovereign bonds, you lend the government a certain sum on which you are paid a\nset rate of interest at regular intervals. This interest, fixed during issuance,\nis known as a Coupon. This kind of investment makes bonds fixed assets. The\nbond price (principle or market value) fluctuates with market mechanics. At the\nend of the maturity period of the bond, the government will repay the price\nvalue of the bond.<\/p>\n\n\n\n<p>Different bonds have\ndifferent maturity periods. Depending on the type of bond you buy, the maturity\nperiod can vary from within a year to over 30 years.<\/p>\n\n\n\n<p>Similar to shares, bonds can either be held\nfor a long time or be sold in the open market. A lot of factors affect the\nprices of the bonds. Some of these are supply and demand (Governments can\nsupply bonds on a need-basis). The demand for a bond depends on how promising\nthe returns are, credit ratings, and how close are the bonds to maturity.<\/p>\n\n\n\n<p>Treasury bonds, also known as T-bonds or\nT-bills, are bonds that expire in more than ten years. They are considered to\nbe the safest among government bonds.&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"c_Risks_associated_with_bonds\"><\/span>c. <strong>Risks associated with bonds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Government bonds, in\ngeneral, have an image of being the safest investment option. However, the\ninvestment scenario is more complicated than just that. Government bonds are\nnot risk-free investments. Frankly, no investment is risk-free. There are\nseveral risks associated with government bonds too, and one should always\nremember that ultimately, government bonds are governed by the market forces. <\/p>\n\n\n\n<p>One such risk\nassociated with these bonds is interest rate risk. There is a possibility that\nwith a rising rate of interest, potential investors will no longer find the\nfixed lower interest bonds attractive, resulting in a lower market value of the\nbond. <\/p>\n\n\n\n<p>Another risk is from\ninflation. Rising inflation makes the value of bonds take a dive. <\/p>\n\n\n\n<p>Then there is, of course, the currency risk.\nOn the flip side, currency value appreciation could offset a low yield for\ninternational investors, but this is highly risky, as\nfuture prediction of currency movements is tricky.<\/p>\n\n\n\n<p>Some say that holding government bonds right\nnow might not be in the investor\u2019s favor, given the risks associated with it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"d_Advantages_of_investing_in_government_bonds\"><\/span>d. <strong>Advantages of investing in government bonds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>What makes bonds a good\ninvestment option, and whom are they meant for? Bonds could be an excellent fit\nfor someone looking for safer investment avenues. While no investment is\nrisk-free, government bonds are not subject to the volatility of market\nconditions such as equities, and hence, have a reputation for being the\nde-facto safe investment option. <\/p>\n\n\n\n<p>T-bonds are considered\nthe safest investment in the world because they come backed by the \u2018full faith\nand credit\u2019 of the U.S. government. Since it is almost impossible to imagine a\nbreakdown of the \u2018greatest economy in the world\u2019, T-bonds present as an\nalluring investment option. Ratings agencies such as Fitch and Moody\u2019s have\nalso assigned T-bonds an AAA rating, the highest in the world, which is further\nindicative of their safety.<\/p>\n\n\n\n<p>If your portfolio already has exposure to\ninvestment in stocks, then T-bonds may be a good diversification option to\nbuffer against the high-risk shares.<\/p>\n\n\n\n<p>Another advantage is that the income from\nT-bonds is received in the form of interest. The nearly guaranteed income is\nstable and secure, thus making it a favorite for those seeking regular payouts.\nIf the bonds are held until maturity, the investor receives the entire\nprincipal back too. Thus, the investment is never lost unless the government\ndefaults, which is far-fetched for strong economies such as the United States.\nThe U.S. government has never defaulted on a debt or missed payment on debt\ntill date.<\/p>\n\n\n\n<p>In some instances, an\ninvestor can capitalize on the resale of the bonds. At times, bond traders may\nbid the price up of the bond in the open market beyond the bond&#8217;s face value,\nfetching investors a handsome profit.<\/p>\n\n\n\n<p>Another important advantage of T-bonds is\ntheir liquidity. The market for Treasuries is large and active, making it\nrelatively easy to buy or sell Treasury bonds, notes, or bills in various\nquantities and maturities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"e_Disadvantages_of_investing_in_government_bonds\"><\/span>e. <strong>Disadvantages of investing in government bonds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now that we have gone\nthrough the advantages of investing in government bonds, let us explore some\ndisadvantages of holding this security to help you make informed decisions.<\/p>\n\n\n\n<p>Firstly, bonds are a\nlow-yield investment because the risks associated with these bonds are low, and\ntherefore, have low returns. In investing parlance, this is called an\nopportunity risk &#8211; where the money locked in this investment could have earned\nyou a higher return had it been invested in some other asset. In contrast,\ncorporate bonds and shares have a higher rate of return. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1300\" height=\"562\" src=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2020\/12\/Government-bonds-1300x562.png\" alt=\"Government Bonds\" class=\"wp-image-10092\" srcset=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2020\/12\/Government-bonds-1300x562.png 1300w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2020\/12\/Government-bonds-300x130.png 300w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2020\/12\/Government-bonds-768x332.png 768w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2020\/12\/Government-bonds-600x259.png 600w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2020\/12\/Government-bonds.png 1310w\" sizes=\"(max-width: 1300px) 100vw, 1300px\" \/><\/figure>\n\n\n\n<p>Treasury bonds are also\nsubject to many of the risks associated with fixed income instruments &#8211;\nprimarily, that of interest rates. As interest rates go up, Treasury prices in\nthe market go down as the product may no longer be attractive to investors\n(investors will pump money into products that yield higher returns). Inversely,\nif interest rates go down, that translates into lower yield returns, even\nthough market prices may then be going up as investors may find it affordable. <\/p>\n\n\n\n<p>Generally, the longer\nthe maturity of the Treasury security, the more significant is the drop in\nmarket price. This means that Treasury bonds are most affected by interest rate\nrisk, while treasury notes have somewhat lesser risk, and bills, with their\nshorter-term maturity, have the least exposure to interest rate risk. <\/p>\n\n\n\n<p>This also brings to\nlight the fact that bonds have a longer gestation period (time to maturity)\nthan other financial instruments. Some bonds can make you wait as long as 30\nyears! <\/p>\n\n\n\n<p>An investor should also\ntake note of inflation that could affect the returns from bond investments. It\ncould negate interest or even eat into savings. Additionally, while there are\nno local or state taxes levied on the bonds, you might have to pay federal tax\non this type of investment. <\/p>\n\n\n\n<p>Some treasury bonds have \u2018call provisions\u2019\nthat allows the government to retire them before the originally-stated maturity\ndate.&nbsp; The government can take this action when rates fall beyond\nconducive limits.<\/p>\n\n\n\n<style type=\"text\/css\">\r\n  .articles-ad-page {\r\n   border-top: 1px solid #ADADAD;\r\n   border-bottom: 1px solid #ADADAD;\r\n   padding: 15px 0;\r\n   margin-bottom: 10px;\r\n   display: block;\r\n  }\r\n\t.articles-ad-page {padding: 10px 5px; border-top: 1px solid #BEBEBE; border-bottom: 1px solid #BEBEBE; margin-bottom: 20px;\t}\r\n\t.articles-ad-page img {float: left; margin-right: 20px; max-width: 140px; margin-top: 5px; margin-bottom: 5px; border-radius: 0;}\r\n\t.articles-ad-page .txt {line-height: 21px; margin-bottom: 0; font-size: 14px; margin-top: 4px; }\r\n  .articles-ad-page .txt p{font-size: 14px;}\r\n  .articles-ad-page .txt p a{color: #035184 !important; font-weight: bold; text-decoration: none;}\r\n  .spocored-text{color: #cac5c5; font-weight: 500; float: right; font-size: 12px;}\r\n  .wa-text{color: #183a68; font-weight: bold; float: left; font-size: 12px;}\r\n  .articles-ad-page .alignleft{ float:left!important;}\r\n  .txt-head{margin-bottom: 2px; text-align: left; margin-top: -6px;}\r\n  .txt-text{margin-bottom: 14px;}\r\n  @media screen and (max-width:767px) and (min-width:320px){\r\n      .articles-ad-page .txt-head {margin-top: -15px; float: left; width: 50%;}\r\n      .articles-ad-page .txt {width: 100% !important; margin-top: 12px;}    \r\n      .articles-ad-page { display: block;}\r\n    }\r\n  @media screen and (max-width: 360px) and (min-width: 320px){\r\n    .articles-ad-page .txt-head a {\r\n        font-size: 16px!important;\r\n        line-height: 16px!important;\r\n    }\r\n    .articles-ad-page .txt-head{\r\n        margin-right: 14px;\r\n            width: 45%;\r\n    } \r\n    .articles-ad-page img{ margin:0 10px 10px 0px!important;}\r\n  }\r\n<\/style>\r\n\r\n\r\n<p><span class=\"spocored-text\" >SPONSORED<\/span> <span  class=\"wa-text\">WISERADVISOR<\/span><\/p>\r\n<div class=\"clearfix\"><\/div>\r\n<div class=\"Articles-ad-page\"><img decoding=\"async\" class=\"alignleft-new\" style=\"margin-top: 0px;\" src=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2023\/03\/ads-image-1.jpg\" alt=\"ad_article\" width=\"\" height=\"\"><p><\/p>\r\n<div class=\"txt-new\">\r\n<p style=\"margin-bottom: 22px;\"> <a href=\"https:\/\/www.wiseradvisor.com\/match_advisors.asp?kwd=paladin-blog-ad-should-you-hold-or-sell-your-long-term-u-s-government-bonds&amp;utm_medium=middle\" style=\"color:#035184;     font-size: 20px;font-weight: 700; text-decoration: none;\" target=\"_blank\" rel=\"noopener noreferrer\">Need a financial advisor? Compare vetted experts matched to your needs. Compare credentials and fees.<\/a><\/p>\r\n<p>Choosing the right financial advisor is daunting, especially when there are thousands of financial advisors near you. We make it easy by matching you to vetted advisors that meet your unique needs. Matched advisors are all registered with FINRA\/SEC.  <a href=\"https:\/\/www.wiseradvisor.com\/match_advisors.asp?kwd=paladin-blog-ad-should-you-hold-or-sell-your-long-term-u-s-government-bonds&amp;utm_medium=middle\" target=\"_blank\" style=\"font-weight: 700;    color: #035184;\" rel=\"noopener noreferrer\">Click to compare vetted advisors now.<\/a><\/p>\r\n<\/div>\r\n<div class=\"clearfix\"><\/div>\r\n<\/div>\r\n\r\n\r\n\n\n\n\n<p>COVID-19 \u2014while posing a severe\nthreat to public health\u2014has also disrupted the economy and financial markets,\nprompting a strong desire among investors for safer and liquid investments. In\nsuch a situation, one might expect U.S. Treasury bonds to be the investment of\nchoice, but for a while in March 2020, the $18 trillion U.S. market saw some\nloosening of investor interest. Despite the very volatile stock market, led by\nextremely low interest rates, bonds failed to attract investors as much as\nexpected.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_caused_the_volatility\"><\/span><strong>What caused the volatility?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The U.S. Treasury bonds market is quite deep\nand highly liquid. This means that investors can buy and sell large quantities\nof these securities without affecting the market price of the bond. Market\nparticipants\u2014banks, insurance companies, asset managers, mutual funds, and\nothers\u2014rely on this easy selling-ability of their bond holdings to meet their\ndemand for cash. However, in March 2020, when the markets met the challenging\nand damaging impact of COVID-19, investors gave up Treasuries in a rush in\norder to get cash. In some cases, this was a reflection of their investment\nobjectives\u2014selling Bonds in order to buy depressed equities. In other cases,\nthese sales were forced by losses or the need to settle short-term debts, and the\nmarket proved unable to handle the surge in Treasury sales.<\/p>\n\n\n\n<p>The lesson learned: No investment is risk-proof. Bonds&#8217; depth and liquidity were gone, prices became extremely volatile, and sellers could not find ready buyers at a reasonable price. The uncertainties and such a large-scale industry deleveraging only furthered the downturn.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Should_you_continue_to_hold_bonds_in_the_future\"><\/span>4. <strong>Should you continue to hold bonds in the future?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The current interest rates are lower than the\nhistorical averages. It is imperative to mention here that the historical average\nreturn may not be very relevant for someone looking to estimate future market\nreturns. Investing mogul, Warren Buffet, has often warned investors about this\nfalse fascination with the past. He calls it a recipe for disaster. The problem\nwith attempting to gain insights from historical outcomes is that future market\nreturns are connected to the current values rather than their historical\nperformance.<\/p>\n\n\n\n<p>Returns on bonds are dependent on initial bond\nyield and subsequent yield changes. Low bond yields will translate into lower\nreturns, and the heightened interest rate risk associated with capital losses\nwhen interest rates rise needs to be kept in sight.<em><\/em><\/p>\n\n\n\n<p>The 2020 yield curve inversion began on 14\nFebruary 2020. The yield on the 10-year note fell to 1.59%, while the yield on\nthe one-month and two-month bills rose to 1.60%. Investors were growing\nconcerned about COVID-19.<em><\/em><\/p>\n\n\n\n<p>The inversion worsened as the situation got\ngrimmer. Investors rushed to sell the bonds, and yields fell, setting new\nrecord lows along the way. By 9 March 2020, the 10-year note had fallen to a\nrecord low of 0.54%. The yield on the one-month bill was slightly higher, at\n0.57%. Additionally, there are ongoing pressures to keep yields low. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Conclusion\"><\/span>5. <strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>America is undergoing a major transition &#8211;\neconomically and politically. Add to the mix that government machinery all\nacross the world was on a standstill with lockdown imposed to combat COVID-19,\nwe are yet to assess the actual impact to business and sentiment. There is no\ndenying that GDP (gross domestic product &#8211; the measure of growth of an economy)\nis affected and may remain subdued for the coming few years. <\/p>\n\n\n\n<p>The Fed is doing everything possible in its\npower to buoy the economy and keep it from receding into a depression from the\ncurrent recession-like situation by releasing stimuli packages for the economy.\nIn the light of these efforts, it remains for us to consider how government\nprograms affect the value of money and what investments become attractive.<\/p>\n\n\n\n<p>It is true that\ninterest rates are languishing near all-time lows with no signs of a revival at\nleast in the near-term. Will it make sense to purchase bonds at this low rate\nof return? On the other side of the coin, government bonds continue to be the\nsafest investment options. Popular opinion is that given the unpredictable\nsocial, political, and economic circumstances, it might be a good idea to\ncontinue to hold the currently high-priced bonds. However, it may not be a good\nidea to trade off shares for bonds. The current environment calls for bonds to\nbe a fallback option and not your mainstream portfolio component.<\/p>\n\n\n\n<p>If you are still\nconfused about whether you should hold or sell your bonds, and need guidance, <a href=\"https:\/\/www.paladinregistry.com\/landing\/find-financial-advisors?cta=match\">you can get in touch with a professional financial advisor using\nthe free match tool on Paladin Registry!<\/a> The\nfiduciaries on the platform can provide you with the necessary personalised\nguidance and assist you to reach your financial goals. <\/p>\n\n\n\n<p>To learn more about the most suitable tax-saving strategies for your specific financial requirements, visit&nbsp;Dash Investments&nbsp;or email me directly at&nbsp;<a href=\"mailto:dash@dashinvestments.com\"><strong>dash@dashinvestments.com<\/strong><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"About_Dash_Investments\"><\/span><strong>About Dash Investments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.dashinvestments.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Dash Investments<\/strong><\/a>&nbsp;is privately owned by&nbsp;<a href=\"https:\/\/www.paladinregistry.com\/blog\/author\/jonathan-dash-founder-cio-dash-investments\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Jonathan Dash<\/strong><\/a>&nbsp;and is an independent investment advisory firm, managing private client accounts for individuals and families across America. As a Registered Investment Advisor (RIA) firm with the SEC, they are fiduciaries who put clients\u2019 interests ahead of everything else.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.paladinregistry.com\/financial-advisory-firm\/woodland-hills\/california\/dash-investments\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Dash Investments<\/strong><\/a>&nbsp;offers a full range of investment advisory and financial services, which are tailored to each client\u2019s unique needs providing institutional-caliber money management services that are based upon a solid, proven research approach. Additionally, each client receives comprehensive financial planning to ensure they are moving toward their financial goals. CEO &amp; Chief Investment Officer&nbsp;Jonathan Dash&nbsp;has been covered in major business publications such as Barron\u2019s, The Wall Street Journal, and The New York Times as a leader in the investment industry with a track record of creating value for his firm\u2019s clients.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Pandemic and the ensuing Fed actions to revive the market by easing liquidity has pushed the yield of the benchmark 10-year Treasury bonds to near record lows; yield as of October 2020 is at a measly 0.7%. Meanwhile, the price of the bonds in the open markets surged due to their inverse correlation to the yield, tempting investors to sell their bond holdings. With the Fed vowing to pin<\/p>\n","protected":false},"author":125,"featured_media":10094,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[395],"tags":[],"class_list":["post-10091","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Should You Hold Or Sell Your Long-Term U.S. Government Bonds?<\/title>\n<meta name=\"description\" content=\"The following information is to help you get a better understanding and reach an informed decision regarding your portfolio holdings of U.S. Government Bonds.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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