By Collin Martin
When the yield curve is flat, as it has been recently, investors often ask us: Why invest in long-term bonds when one can get similar yields with safer, short-term investments like U.S. Treasury bills or money market funds?
It's a logical question - after all, the 10-year Treasury note currently offers a yield that's barely above the three-month Treasury bill yield. It may seem counterintuitive to tie up your money for longer for only modestly higher yields.
The slope of the yield curve is relatively flat
Source: Bloomberg, as of 4/29/2019
However,