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Treasury Bonds in 2025: Are They Still Worth It?

Are U.S. Treasury Bonds still worth it in 2025? Learn how Treasuries work, their yields, risks, and why they may be a safe option for investors this year.

PERSONAL FINANCEMARKETINVESTMENTS

9/15/2025

When markets feel uncertain, many investors turn to U.S. Treasury Bonds—considered one of the safest investments in the world. Backed by the U.S. government, Treasuries are a cornerstone of conservative portfolios.

But in 2025, with Federal Reserve interest rates still elevated and inflation gradually cooling, the question is: Are Treasury Bonds still worth buying today? This article will explore how they work, their pros and cons, and whether they should have a place in your portfolio this year.

What Are Treasury Bonds?

Treasury Bonds (T-bonds) are long-term U.S. government securities with maturities of 20 to 30 years. Investors lend money to the government in exchange for:

  • Semi-annual interest payments (fixed).

  • Return of principal at maturity.

Treasuries are considered risk-free in terms of default since they’re backed by the U.S. government.

Treasury Yields in 2025

  • In early 2025, yields on 10-year Treasuries are hovering around 4.0–4.3%, while 30-year bonds offer slightly higher returns.

  • Compared to just a few years ago (when yields were below 2%), Treasuries are far more attractive today.

  • However, yields could fall if the Fed cuts rates later in the year—meaning current buyers may benefit.

Advantages of Treasury Bonds

  1. Safety – Virtually no credit risk.

  2. Predictable Income – Fixed interest payments every six months.

  3. Portfolio Diversification – Often rise in value when stocks fall.

  4. Liquidity – Easy to buy and sell in the secondary market.

Risks of Treasury Bonds

  1. Interest Rate Risk – If rates rise, bond prices fall.

  2. Inflation Risk – Rising inflation erodes real returns.

  3. Opportunity Cost – Stocks or ETFs may outperform over the long term.

Treasury Bonds vs Other Investments in 2025

  • Compared to CDs (Certificates of Deposit): Treasuries offer similar yields but more liquidity.

  • Compared to Dividend Stocks: Stocks carry more risk but may provide higher long-term returns.

  • Compared to ETFs: ETFs offer diversification, while Treasuries focus on safety.

💡 Many investors in 2025 are laddering Treasuries—buying bonds with different maturities—to balance income and interest rate risk.

How to Invest in Treasury Bonds

  1. Directly from TreasuryDirect.gov – Commission-free.

  2. Through Brokerage Accounts – Buy on the secondary market.

  3. Via Treasury ETFs – Like iShares 20+ Year Treasury Bond ETF (TLT) for long-term exposure.

FAQs

1. Are Treasury Bonds a good hedge against a recession?
Yes. Historically, Treasuries perform well during downturns as investors seek safety.

2. What’s better in 2025: Treasuries or savings accounts?
Treasuries may offer higher yields than some savings accounts and are backed by the U.S. government.

3. Can I sell a Treasury Bond before maturity?
Yes, in the secondary market, though the price may be higher or lower than face value depending on interest rates.

Conclusion

In 2025, Treasury Bonds remain a strong option for conservative investors who want safety, steady income, and diversification away from stocks. While they may not deliver explosive growth, they provide stability in uncertain times—especially useful in today’s high-rate environment.

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