>>20048401>>20048406explain that to me like i am retarded.
As I understand they try to set the yield as low as possible while still getting people to buy them for the "security premium". So higher yields means that people are generally more likely to put their money anywhere else. So short term being higher means that people either: a) gamble their money on more risky investments that have higher yield (shitcoins, nvidia) or b) the GOV actually needs money short term so they really try to get you to give it to them and a higher yield for a short timeframe is not as bad as for a long one due to compound interest(???)
I don't even get how someone would go for 1y over multiple 1m if they are at the same yield, let alone the 1m being higher. the timeframe being shorter means you generally are much safer since you can reallocate your money each month, no?
Also from the GOV PoV its better to have long term treasuries since you get to keep the money for longer, so they are more inclined to raise yields on longterm vs shortterm in a vacuum, no?
Do I get that about right? So the only scenario where people would buy 20y at low percent is if they expect a bad and long recession where any investment they could reallocate their 6m money back into will result in worse yields than they get locked in on the 20y? then again a <1% diff isnt so bad in any case i guess
