Yes, but assuming it is 20 years until maturity, keep in mind this is about a 6.5% annual rate of return (assuming your figure of 3.5 is correct) After inflation, which we can under-estimate at 4%, you are left with 2.5%. I don't mean to be a downer but want to make sure you know what you're getting into.
Paper on top of paper on top of paper.......it will ALL come crumbling down, it is just a matter of time.
I made $200k in a little less than 5 months. 21% return. If they're a joke, I'm laughing all the way to the bank, of course making sure I don't keep more than $100k in one bank.
Well it's 6 months since i bought the May 2036 zero coupon treasuries. They are up 48% since May. These things have truly amazed me with their mega return in only 6 months.
If you bought ANY treasury. 30yr, 10 yr, etc except for TIPS you made money. Sell, take your profit and shut up.
And if rates ramp up, make sure you tell us how much you gave back. Of course you 'made' money, but if you sell you lose the embedded interest rate, so you're locked in. If you can time the moves you are entitled to make $$$$ and you could make even more if you were that good, and not lucky, trading bond futures.
I don't think the treasuries that pay interest moved up 48% in 6 months. The reason I bought the zero coupons with a 28 year maturity is because zeros are more volatile and longer maturities are even more volatile. I think I'll sell my bonds today and be happy with a close to $500k profit. Any one think that rates will go lower from here? I will regret selling them if rates continue lower, which they probably will.
The reason that I don't trade futures is because I don't follow the markets on a day to day basis, plus I don't want to have to worry about margin calls if I'm wrong.