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Can I buy some US treasury bills or notes ETFs (3 month to 5 years) with very low risk from EU (want to buy it in EUR so I don't have to convert it - would this even be a problem?). Because EU bond returns are just to low and I think it's not worth it (not sure for US bonds either).

Or is there some alternative to keep money safe without it depreciating to much?

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There are plenty of international bond funds that are hedged to Euro, so you are eliminating your foreign exchange risk. Just check what your broker has to offer. However, these will fluctuate in value as bond value changes. When interest rates rise at some point in the future, the value of current bonds will decrease and so does your bond ETF

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  • Yes I figured out somehow that buying bonds right now could be too risky and unprofitable. In other terms you would be probably better of with cash even if there is a lot of inflation.
    – klemsi123
    Mar 23 at 16:02
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    It depends what you want to do with the money and when you need it. If you need the money in 1 year to buy a car/house/... put it in a bank account and just swallow inflation. If you need it for your retirement, you need to start investing
    – Manziel
    Mar 23 at 16:18
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There isn't an easy answer to your question because of the tradeoffs involved:

  • An ETF or mutual fund can be dollar-hedged or unhedged, to your preference. But the fund price will fluctuate. At the end of your desired holding period, the fund/ETF price might be depressed.
  • Buying individual bonds and notes will ensure that you get exactly the payments ($) and return of principal ($) that you are expecting. But this requires managing more positions and would also require managing a separate dollar hedge if you don't want currency risk (the risk that the USD/EUR rate will change significantly).
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  • So it would be very difficult to do and it's probably not even worth it. At least I don't understand how it would be.
    – klemsi123
    Mar 23 at 16:09

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