Now that the federal reserve has indicated they are willing to start lowering rates, is it a good idea to start buying longer dated treasuries ?
Yes ! As long as the treasuries are yielding close to the 3 month rate of 5.3 %
Currently, the one year rate is yielding 5.03 % and 6 month rate is yielding close to 5.3 %.
How about the 2 year treasury note currently yielding 4.6 % ?
With the latest sticky cpi ( consumer price index ) , the FED may have to wait a little longer to start cutting rates. So, there may be a better opportunity to lock in 2 year rates in the next few months if safety and liquidity is of prime concern.
* This is not financial advice. Just my own thought process when investing in these financial instruments.