Treasury Bills, Notes, and Bonds Discussion 2024+

[BGold]

My DW and I were 5-yr TIPS buyers at this auction. Very pleased.

 

[audreyh1]

That’s great. We finished filling up our 5-Year TIPS slot last October.

 

[copyright1997reloaded]

My DW and I were 5-yr TIPS buyers at this auction. Very pleased.

Same - bought some.

Also bought 1 & 2 month T-Bills and just put in orders for Monday's 3 & 6 month auctions. I had been somewhat accumulating in money markets as things matured and w/this little leg up in rates started to deploy. Still have about one month's worth of cash either in the MM or maturing in April.

 

[mxbuz]

I'm looking to extend maturity dates out longer than 2-5 (even 10) years at ~5%. I've always stayed with CD's or treasuries. I've never bought an Agency bond before and would like some opinions/concerns of them. I found this one 3130B0XX2 on Schwab. FEDERAL HOME LN BKS 5.05% 04/17/2034, Callable in whole or part One time beginning 04/17/2029 with 5 days notice. I like 5 years at 5% and 10 year seems pretty good too? Thanks for any input!

 

[QG67PK00]

I'm looking to extend maturity dates out longer than 2-5 (even 10) years at ~5%. I've always stayed with CD's or treasuries. I've never bought an Agency bond before and would like some opinions/concerns of them. I found this one 3130B0XX2 on Schwab. FEDERAL HOME LN BKS 5.05% 04/17/2034, Callable in whole or part One time beginning 04/17/2029 with 5 days notice. I like 5 years at 5% and 10 year seems pretty good too? Thanks for any input!

I bought a 6% Agency Bond in October but it was callable in April. It got called.

The bond you are looking at is a pretty good one, it is like a 5 year CD with 5% paid every 6 months, there is no compounding of interest.

If interest rates drop (very likely in the next 5 years), the bond will definitely get called in April 2029. If you are sure you do not want to touch the investment in the next 5 years, it is a good option.

 

[Chuckanut]

Because we continue to have this inverted yield curve and the inflation scenario is still murky at best if not somewhat negative for the next 2-5 years (IMO of course), I am thinking of changing my strategy a bit.

I will use a Hybrid approach. Im my mind that means 3 to 18 month CDs and treasuries to capture the higher rates portion of this inverted yield curve. And some TIPS and plenty of total market index fund shares for long term protection against inflation. My AA will most likely be in the area 50/50.

Diversification is the only real answer I can see for my situation. YMMV.

 

[jldavid47]

Because we continue to have this inverted yield curve and the inflation scenario is still murky at best if not somewhat negative for the next 2-5 years (IMO of course), I am thinking of changing my strategy a bit.

I will use a Hybrid approach. Im my mind that means 3 to 18 month CDs and treasuries to capture the higher rates portion of this inverted yield curve. And some TIPS and plenty of total market index fund shares for long term protection against inflation. My AA will most likely be in the area 50/50.

Diversification is the only real answer I can see for my situation. YMMV.

Sounds like a reasonable approach to me.

 

[audreyh1]

This week’s T-bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797JY4 04/30/2024 5.275% 5.370% $99.589722 8-Week No 912797KG1 04/30/2024 5.275% 5.393% $99.179444 13-Week No 912797JT5 04/25/2024 5.255% 5.400% $98.671653 17-Week No 912797KZ9 04/30/2024 5.240% 5.406% $98.267889 26-Week No 912797KV8 04/25/2024 5.160% 5.372% $97.391333

April 2024 Treasury Note auction results:

Notes Reopening CUSIP Issue Date High Yield Interest Rate Price per $100 2-Year No 91282CKK6 04/30/2024 4.898% 4.875% $99.956684 3-Year No 91282CKJ9 04/15/2024 4.548% 4.500% $99.866800 5-Year No 91282CKP5 04/30/2024 4.659% 4.625% $99.849895 7-Year No 91282CKN0 04/30/2024 4.716% 4.625% $99.462794 10-Year Yes 91282CJZ5 04/15/2024 4.560% 4.000% $95.590932

 

[Chuckanut]

My DW and I were 5-yr TIPS buyers at this auction. Very pleased.

If we are in for several years of 3+% inflation you are looking like a champ.

FWIW, I think we are looking at over 3% inflation for several years. Though my COLA lite pension would love to see 2%.

 

[Spock]

Interesting utoob vid yesterday about the new treasuries in the quarterly refunding announcement:
* $125B offering, of which 107.8B to refund existing and new cash raise of $17.2B... so 86% goes to refi old debt.
* New issues skewed to short dates to keep the rates on 10year + from rising and the mortgages/etc that are tied to the 10year.
* new 6 week bill to be offered permanently. replaces CMBs. Commentator said it would benefit MMFs.
* Blue Sky research into possible new offerings to increase the markets for treasuries:
** callable treasuries
** new "green" treasuries to be used on only "green" projects
** 3 year TIPs
** longer durations... 50 year bonds?
IMO, if they want to increase domestic market uptake of treasuries to fund deficits, make treasuries tax exempt.

 

[Chuckanut]

This week’s T-bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797JY4 04/30/2024 5.275% 5.370% $99.589722 8-Week No 912797KG1 04/30/2024 5.275% 5.393% $99.179444 13-Week No 912797JT5 04/25/2024 5.255% 5.400% $98.671653 17-Week No 912797KZ9 04/30/2024 5.240% 5.406% $98.267889 26-Week No 912797KV8 04/25/2024 5.160% 5.372% $97.391333

April 2024 Treasury Note auction results:

Notes Reopening CUSIP Issue Date High Yield Interest Rate Price per $100 2-Year No 91282CKK6 04/30/2024 4.898% 4.875% $99.956684 3-Year No 91282CKJ9 04/15/2024 4.548% 4.500% $99.866800 5-Year No 91282CKP5 04/30/2024 4.659% 4.625% $99.849895 7-Year No 91282CKN0 04/30/2024 4.716% 4.625% $99.462794 10-Year Yes 91282CJZ5 04/15/2024 4.560% 4.000% $95.590932

No doubt about it. I am going to grab some of these short term rates. I have common stocks, Ibonds, and a few Tips for inflation protection. Time to add some current income.

 

[Rayray3]

I've been laddering 26-week T-bills for about a year. 52-week T-bill return is about 5.22%, which is higher than the 26-week when I first started laddering. Wondering if it's time to gradually switch the ladder to 52-week. Too early?

 

[audreyh1]

This week’s T-bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797JZ1 05/07/2024 5.275% 5.370% $99.589722 8-Week No 912797KH9 05/07/2024 5.270% 5.387% $99.180222 13-Week No 912797JU2 05/02/2024 5.250% 5.395% $98.672917 17-Week No 912797LA3 05/07/2024 5.245% 5.412% $98.266236 26-Week No 912797HE0 05/02/2024 5.165% 5.377% $97.388806

 

[aja8888]

This week’s T-bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797JZ1 05/07/2024 5.275% 5.370% $99.589722 8-Week No 912797KH9 05/07/2024 5.270% 5.387% $99.180222 13-Week No 912797JU2 05/02/2024 5.250% 5.395% $98.672917 17-Week No 912797LA3 05/07/2024 5.245% 5.412% $98.266236 26-Week No 912797HE0 05/02/2024 5.165% 5.377% $97.388806

Thanks!