Bonds are an important part of any portfolio, but they are particularly crucial for retirees. Experts recommend that you increase the proportion of bonds relative to stocks in your portfolio as you age. The reason is simple: Bonds, especially Treasury bonds, are far less volatile than stocks. In a market downturn, bonds historically fall much less sharply than stocks or may even rise as investors seek out safe investments. They can also provide an income stream in retirement.
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But the day of the week on which you buy your bonds may make a difference. Some retirees are buying bonds on Friday instead of Thursday — here’s why.
In an analysis of long-term treasury bond purchases from 2002 to mid-2025, Quantified Strategies found that Fridays have historically been the best day for bonds. The average daily return for bonds on a Friday was 0.05%, compared to a -0.02% return on Thursdays.
The research also shows that Tuesday is also a good day to buy bonds, particularly if Monday is a down day. On a Tuesday following a down Monday, bonds returned an average of 0.06%.
Performance was measured from the close of trading one day to the close of trading the next day.
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There are two main benefits of bonds in your portfolio. They provide income, which can stay in your account or be used to supplement social security and other forms of retirement income. And they can lower the volatility in your portfolio, which is important for retirees. Let’s look at these two benefits in more detail.
When you buy a bond, you are loaning money to a corporation or a government entity. In exchange, the issuer of the bond pays you interest periodically. When the bond matures, you get your principal payment back. The interest you received over time is your return on the investment.
Here’s an example. Suppose you purchase a $1,000 bond that pays 4% interest for ten years. You’ll get $40 in interest each year, usually paid twice a year. During the ten years you own the bond, you’ll get $400 total in interest — that’s your return on your investment. At the end of ten years, you’ll get back the $1,000 you paid for the bond.
Before you retire, you can reinvest the income you earn from bonds to increase the size of your nest egg. Once you stop working, you can use the income from bonds to supplement your social security, pension or other retirement income stream.
