Ivan, I doubt the return on a t-bill covers the rate of inflation. So I too wonder if they are safe. lol My local bank offered a better 3-month CD rate.
If a short duration treasury fund there is a risk a loss if things get back to normal and risk aversion subsides as they will sell off hard as money leaves for better returns. If you think things are going to get worse before they get better then this fund should do well or at least hold its value. If long duration treasuries then fund may lose value as the fed cuts and inflation panic sets in. Who wants to own a 30 year bond anywhere near 4 or 5% with inflation ramping.
http://www.businessweek.com/magazine/content/05_33/b3947136_mz070.htm http://news.morningstar.com/articlenet/article.aspx?id=122398
What do you guys think of buying muni Auction rate securities with underlying A+ and resetting at 8-15% at auction. These auctions are not failing, just setting high. I got 50k of LA MTA at 10% or 12% last week. They have an underlying AAA. So wjhat if they refi?
I dunno about the long-term treasury bonds crashing, but yields on corp and municipals did indeed rise. Nice call!