Riding the Yield Curve: Reprise

REFiISEWe investigate the efficacy of riding the yield curve.This strategy dictates holding longer-term treasury bills when the yield curve is upward- sloping.We find that the strategy is surprisingly effective.it stochastically dominates buying and holding shorter-term bills for large subperiods, and nearly dominates for the entire sample period, 1949 -1988.Our empirical results suggest that abnormal profit opportunities are available from selectively increasing the maturity of a short-term portfolio.