September 16, 2025
Managing Partner Charlie Garcia warns investors about the seductive “bargain” of long-dated Treasury bonds. On the surface, 2055 zero-coupon bonds look cheap, down more than 60% from their highs.
Never catch a falling safe — especially when Washington is the one dropping it. In his latest Street Sense column for MarketWatch, R360 Managing Partner Charlie Garcia warns investors about the seductive “bargain” of long-dated Treasury bonds. On the surface, 2055 zero-coupon bonds look cheap, down more than 60% from their highs. But in reality, they’re IOUs from a government running $2 trillion deficits — and the dollars you’ll get back in 30 years may only buy half a ham sandwich.
Charlie unpacks why inflation, relentless debt issuance, and rate risk make these bonds a trap — and why investors should think twice before betting their future on promises from a government that pays its Visa with its Mastercard.
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