>In practice, monthly returns have closely matched the percentage rate for the 10-year U.S. Treasury Note almost perfectly. The G Fund and 10-year are 98.4% correlated since 1988
https://www.govexec.com/pay-benefits/2023/05/tsp-g-fund-debt...
https://www.govexec.com/pay-benefits/2023/05/tsp-g-fund-debt...
If you were 100% allocated in TSP G Fund and Treasury yields spiked across the curve, your account balance never goes down and you could withdrawal the entire amount at any time without losing a single penny.
If you were 100% allocated in 10-yr T-notes and Treasury yields spiked across the curve, well...you'd be swallowing a substantial loss proportional to your unhedged duration exposure if you were either to liquidate your position before maturity or before yields normalize.
This[1] is what you don't understand.
How about equivalent risk-free return, even better yield, upside potential, optionality...and you don't need to be a federal employee to play?
It's been hiding in plain sight[1][2] for over a year now, but I'm not a financial advisor and certainly not your financial advisor...just an interwebs rando with a hobby positing food for critical thought.