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Long Treasuries should be the preferred flight to safety over long AAA corporates because risk premiums, even on AAA corprotes, tend to increase during recessions...

How do Treasuries benefit from rate cuts?

Even so, the intermediate bond fund increases in price. You can see this with an overlay of the SP500. When sold near a market bottom, you take a gain even if interests get cut because the bond fund is sold at a higher price than what you purchased. Where does profit come from on Treasury bond funds in this case?

I'm referring to short term. So the bond will be sold.

Lastly, if bond funds have such issues as both of you have mentioned, what do you consider good places to be in this type of market?
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