6 Disadvantages Of Us Treasury Bonds

1. Long-term investment: You might have to wait up to 30 years for this U.S. bond to mature. 2. Their yields tend to be relatively low. 3. In an inflationary environment, the return on principal is worth less than the initial investment. This issue is compounded by the traditionally low yields on Treasuries. 4. Restrictions and penalties: Restrictions and penalties might be associated with redeeming Treasury bonds before they mature.