GOVT - US Treasury Bonds (Aggregate)

Host allocates 20-25% of portfolio to treasuries earning 3.5-3.8% for stability and income, reflecting a conservative allocation.

Graham suggests that buying Treasuries at 5% yields can make sense for safety, liquidity, and short-term capital preservation, especially for retirees or those saving for a house. However, he cautions that long-term bonds (10-30 year) could lose value if yields keep rising.