The value of my brokerage account is $1000x (Fidelity if it matters). Looking at my balances, I see that I am afforded an additional "government bond" buying power which is about $2250x. My regular margin is only $500x. If I'm reading this right, I get to buy government bonds with collective value twice my account, on top of the stocks I bought with my actual money. Wow! Sounds like a great deal!
Of course 2.25x is a substantial amount of leverage, but aren't government bonds supposed to be extremely low risk? This is balance that I can use only for government bonds, so the choice is basically cash vs. g-bonds... And it seems like a no brainer. Why wouldn't I sink the majority (I don't want to use all of it since I'd get a margin call if my main account loses value) of my g-bond buying power into government bonds? Am I not basically wasting potential income by not using this balance? Besides the obvious risk of US Government defaulting, what am I missing?