Graybeard
Full time employment: Posting here.
- Joined
- Aug 7, 2018
- Messages
- 599
Rather than put this in the thread about CDs and cluttering it, I wanted to ask these questions here.
With T bill yields dropping over the past few days (at 1 pm ET the 2 yr T note was up 35 bp from yesterday but the drop yesterday was major) so I thought I'd look at CDs. I never bought CDs at Vanguard before but it looks a lot like buying T bills which I am familiar with.
I looked at 1st issue CDs and wanted to buy something short term for the 1st time to see how this works. I found one that will mature in 30 or 31 days (4/17, settlement is 3/17). The CUSIP is 05465DAY4. There are 40,898 *1,000 CDs (or is that dollars?) and with a yield of 4.95% why haven't these been taken? I always read how CDs with good yields disappear fast. Granted it is just 1 month but a 4 week T bill indictive yield is 4.23 and a 17 week is 4.93 IIRC.
There are a lot of 5%+ CDs is you go out 3, 6+ months. Am I not understanding something? Buying these in my RO IRA will have no tax consequences at maturity. I was thinking of buying $100,000 to start.
Comments?
With T bill yields dropping over the past few days (at 1 pm ET the 2 yr T note was up 35 bp from yesterday but the drop yesterday was major) so I thought I'd look at CDs. I never bought CDs at Vanguard before but it looks a lot like buying T bills which I am familiar with.
I looked at 1st issue CDs and wanted to buy something short term for the 1st time to see how this works. I found one that will mature in 30 or 31 days (4/17, settlement is 3/17). The CUSIP is 05465DAY4. There are 40,898 *1,000 CDs (or is that dollars?) and with a yield of 4.95% why haven't these been taken? I always read how CDs with good yields disappear fast. Granted it is just 1 month but a 4 week T bill indictive yield is 4.23 and a 17 week is 4.93 IIRC.
There are a lot of 5%+ CDs is you go out 3, 6+ months. Am I not understanding something? Buying these in my RO IRA will have no tax consequences at maturity. I was thinking of buying $100,000 to start.
Comments?