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RRB Questios?

In light of the GM article about Real Return Bonds this morning. I feel this is miss leading as if I go back and follow XRB or to get a longer time frame TDB 646 fund I find that RR bonds over 5,10,15 years have did very well. Now if the inflation rate seems to be rising does this not speak well for RRB for a buy and hold retired person like Belguy. I have held these for sometime now and have did well and am thinking of adding to XRB.
PS. I am also retired liked Belguy and enjoy his posts. :)
 

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RRBs have done well as rates have fallen because they are long duration. That cuts both ways, however, and as rates rise, RRBs will be hurt disproportionately. If you don't care about volatility, this is fine--you can clip your coupons and get your inflation adjusted principle on maturity. If you do care about volatility, watch out!
 
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