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Your original question was why would anyone buy long-dated, low-yielding bonds when the short end offered a higher return? I guessed that the "big boys" would do so due to thier unique needs. Smaller investors could trade the yield curve.

The "R" squared of bonds? Now, that's an interesting thought. It's easy to comppute the R2 for stocks, but I don't recall it being done for bonds. Might be an interesting tool to explore.


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