T-bond

Holding a T-bond, as anyone with a slightest knowledge of government fiscal policy is aware, means the bondholder has lent the money to the government, which can use it for any purpose Congress chooses and which must pay interest on the bond.

Interest rates for government bonds are at historic lows, with the yield on the benchmark 10-year T-bond declining below 0.4%.

And even as yields on bond market benchmarks like the 10-year Treasury note US10YT=RR and 30-year T-bond US30YT=RR have seen only intermittent upward pressure, those on shorter-dated Treasuries are decidedly higher.

The Vanguard ETF investing in long-term T-bond zeroes, was up more than 51% for that time.

Just a month ago the T-bond yield stood at 2.2%, and most economists were forecasting a rise to 3.25% or higher.