EDV - Yes 3% Treasuries Are A Bargain With 8% Inflation

May, 02 2022 11:15 AM Vanguard Extended Duration Treasury

First quarter was the worst on record for U.S government bonds.
With the recent 8.5% CPI print, most think the 10-year at sub 3% is crazy. Even more so for the 30-year at a similar yield.
A year or two ago, consensus could not even fathom $80 oil, despite the basic math on supply pointing to a shortfall, irrelevant of a war.
In a similar fashion, the math points to lower yields ahead and it's being ignored. In the coming years, low inflation and even deflation are real possibilities.
Regardless of whether or not we get low or no inflation, here's why today's rates are closer to a ceiling than a floor.

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Company Name:	Vanguard Extended Duration Treasury
Stock Symbol:	EDV
Market:	NYSE