Why U.S. Treasury 10-year Notes?
We consider U.S. Treasury 10-year Notes as representative of the bond market is general. When both gold AND stocks are falling in value, bonds are a simple way to preserve your money, and earn a little interest. The interest is what makes bonds a better idea than just stuffing your money into your mattress. It is very easy to sell (or buy) these notes, in large and small amounts, almost every business day. A bond is an I.O.U. You loan the government money when you buy a bond. The bond itself is a promise to repay your money at a future date, and a contract to pay you interest until that future date. The risk the U.S. Government will not pay back these I.O.Us is extraordinarily small.
