Treasury Bills, Notes, and Bonds Discussion 2024+

[Bruno]

I haven’t. They are still beating short-term CDs in most cases. I know rates are going to drop and I’m OK with rolling down for a while. MMFs will go down too.

Yes I agree with MMF will go down but right now Fido FZDXX is paying 5.15% and their CD 6 month are at 4.65% Schwab CD are 4.7%

 

[audreyh1]

The T-bills are still beating those CD rates. MMFs will drop immediately when the Fed lowers their rate. Therefore many folks lock in attractive rates now where they can.

 

[Chuckanut]

Yes I agree with MMF will go down but right now Fido FZDXX is paying 5.15% and their CD 6 month are at 4.65% Schwab CD are 4.7%

5% on nine and twelve month CDs. Down a bit from 5.15%

 

[Bruno]

5% on nine and twelve month CDs. Down a bit from 5.15%

Local bank has a 13 month CD special paying 5.35%. I got my annuity check today and will put in $200K wed. Sovereign bank and i believe its owned by the tribe.

 

[audreyh1]

This week’s T-bill Auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797LH8 08/20/2024 5.260% 5.355% $99.590889 8-Week No 912797LT2 08/20/2024 5.175% 5.289% $99.195000 13-Week No 912797LD7 08/15/2024 5.070% 5.207% $98.718417 17-Week No 912797MP9 08/20/2024 4.980% 5.134% $98.353833 26-Week No 912797MK0 08/15/2024 4.795% 4.982% $97.575861

There has been a bounce back to higher rates. Not as high as two weeks ago but an improvement over last week’s big drop.

 

[GravitySucks]

Local bank has a 13 month CD special paying 5.35%. I got my annuity check today and will put in $200K wed. Sovereign bank and i believe its owned by the tribe.

Dumb question

What’s The Tribe?
And is that FDIC insured?

 

[Bruno]

Dumb question

What’s The Tribe?
And is that FDIC insured?

Sovereign Bank is owned by CPN indians. Where the casinos keep all there money Yes is FDIC insured. they told me that special was ending soon. I put so more cash in MM they had right now paying 5.40 APY. Shawnee, ok

 

[audreyh1]

This weeks t-bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797LJ4 08/27/2024 5.240% 5.335% $99.592444 8-Week No 912797LU9 08/27/2024 5.125% 5.238% $99.202778 13-Week No 912797LE5 08/22/2024 5.055% 5.192% $98.722208 17-Week No 912797MQ7 08/27/2024 4.920% 5.071% $98.373667 26-Week No 912797KA4 08/22/2024 4.770% 4.956% $97.588500

I have a 26-week T-Bill rolling over next week and I expect to see under 5% - hopefully above 4.9%.

 

[Fermion]

$12k interest in six months off of $500k...still not horrible. My bonds are not due up until Sept 30 though.

 

[calmloki]

Looking at an agency bond that could go out longer than I do. What happens with a FHLB bond with no survivor option if a beneficiary is named at time of purchase - or is that even doable (would be buying through Fidelity). If the bond is redeemed to the beneficiary is interest paid pro-rata from the last interest payment, and if so to what date? Date of death? Date of redemption?

Haven't bought an Agency bond before, so it's a new process for me.

 

[jldavid47]

Looking at an agency bond that could go out longer than I do. What happens with a FHLB bond with no survivor option if a beneficiary is named at time of purchase - or is that even doable (would be buying through Fidelity). If the bond is redeemed to the beneficiary is interest paid pro-rata from the last interest payment, and if so to what date? Date of death? Date of redemption?

Haven't bought an Agency bond before, so it's a new process for me.

You might want to try posting the question here:

Corporate and Agency GSE Bond DEALS and NEW ISSUES

[Mod Edit] I was hoping we could potentially just share new issue or well priced secondary market Corporate Bonds and Agency GSE Bonds here? Please no economic theory or prediction discussions so we can keep this alive. There are separate threads for TREASURIES and CDs/MMs/Savings Accounts...

www.early-retirement.org

 

[pb4uski]

Looking at an agency bond that could go out longer than I do. What happens with a FHLB bond with no survivor option if a beneficiary is named at time of purchase - or is that even doable (would be buying through Fidelity). If the bond is redeemed to the beneficiary is interest paid pro-rata from the last interest payment, and if so to what date? Date of death? Date of redemption?

Haven't bought an Agency bond before, so it's a new process for me.

The beneficiary designation attaches to the brokerage account that you use to buy the agency bond in, not the agency bond itself.

 

[Chuckanut]

The TIPS Watch author says we are now below a 2% real return on TIPS of all durations. Real returns above 2% are not common, so if you grabbed some of those goodies, congratulations.

Have we seen the end of 2.0%+ real yields?

Shorter-term rates will fall. The future of longer-term rates is uncertain. By David Enna, Tipswatch.com Just a few days ago, on Aug. 22, the U.S. Treasury auctioned a reopened 30-year Treasury Inf…

tipswatch.com

 

[audreyh1]

This week’s T-bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797LK1 09/03/2024 5.170% 5.263% $99.597889 8-Week No 912797LV7 09/03/2024 5.100% 5.212% $99.206667 13-Week No 912797HP5 08/29/2024 4.980% 5.114% $98.727333 17-Week No 912797MR5 09/03/2024 4.870% 5.018% $98.390194 26-Week No 912797ML8 08/29/2024 4.685% 4.865% $97.631472

Continuing to drop as the Fed is expected to cut rates in September.

This month’s Treasury Note auction results:

Notes Reopening CUSIP Issue Date High Yield Interest Rate Price per $100 2-Year No 91282CLH2 09/03/2024 3.874% 3.750% $99.763913 3-Year No 91282CLG4 08/15/2024 3.810% 3.750% $99.831417 5-Year No 91282CLK5 09/03/2024 3.645% 3.625% $99.908942 7-Year No 91282CLJ8 09/03/2024 3.770% 3.750% $99.877512 10-Year No 91282CLF6 08/15/2024 3.960% 3.875% $99.303721

 

[Midpack]

Wow. I have some large chunks of T-Bills maturing Oct 4, not excited about what rates may be then. Thinking I will go back to VBTLX in IRAs and buy a 26 week T-Bill for taxable - just for the state tax benefit one more time. T-Bills were fun rewarding while it lasted...

 

[audreyh1]

At some point the yield curve flattens and then if economic conditions are OK uninverts.

 

[audreyh1]

This week’s T-Bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797LS4 09/10/2024 5.080% 5.171% $99.604889 8-Week No 912797MA2 09/10/2024 5.040% 5.150% $99.216000 13-Week No 912797LF2 09/05/2024 4.970% 5.103% $98.743694 17-Week No 912797MW4 09/10/2024 4.810% 4.956% $98.410028 26-Week No 912797MM6 09/05/2024 4.645% 4.823% $97.651694 52-Week No 912797MH7 09/05/2024 4.150% 4.345% $95.803889

I notice that the 26-week T-Bill ended the week at 4.73% and the 4.124% on secondary yesterday (Friday). Quite a bit worse than auction at start of week. Yet another flight to quality at the start of a new month as equities gave up recent gains again.

 

[freedom2022]

Any thoughts about VMFXX, Vanguard Federal Money Market Fund? Thanks.

 

[audreyh1]

Any thoughts about VMFXX, Vanguard Federal Money Market Fund? Thanks.

What about it? It has a great rate that will come down like everything else when the Fed lowers rates.

Folks buy T-bills to lock in rates longer than Money Market funds which float with prevailing rates. Right now the 4 week T-bill has dropped to 5.13% so I expect VMFXX will be coming down too.

 

[Chuckanut]

A year or so ago, we saw some good rates on treasuries and CD’s of 3 to 5 years at well over 5%. A lot of people waited to see if they might go up further. We heard a lot of “Yes that’s a great rate, but what if they go even higher”. But, they didn’t go much if any higher. Rates came down.

As we approach the first FED rate reduction, people are going into shorter and shorter terms where they can still get 5% or thereabouts. I think it may be time to extend those terms and lock in 4%+ while you can, whether it’s treasuries, Agencies, or CD’s. It doesn’t have to be everything at once. No law says you can’t split an investment in half, one half going out 3-5 years, the other 3-9 months.

YMMV.

 

[audreyh1]

Been out of cellphone range for about a week.

This week’s T-Bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797LT2 09/17/2024 4.965% 5.053% $99.613833 8-Week No 912797MB0 09/17/2024 4.990% 5.099% $99.223778 13-Week No 912797LP0 09/12/2024 4.895% 5.025% $98.762653 17-Week No 912797MX2 09/17/2024 4.740% 4.882% $98.433167 26-Week No 912797MT1 09/12/2024 4.530% 4.701% $97.709833

Continuing to drop. I think as of the end of this week on secondary only the 4 week remains above 5% and just barely.

 

[audreyh1]

So Wednesday is the big Fed announcement. We’ll see how much of it is already baked in.

 

[big-papa]

Been out of cellphone range for about a week.

This week’s T-Bill auction results:

Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797LT2 09/17/2024 4.965% 5.053% $99.613833 8-Week No 912797MB0 09/17/2024 4.990% 5.099% $99.223778 13-Week No 912797LP0 09/12/2024 4.895% 5.025% $98.762653 17-Week No 912797MX2 09/17/2024 4.740% 4.882% $98.433167 26-Week No 912797MT1 09/12/2024 4.530% 4.701% $97.709833

Continuing to drop. I think as of the end of this week on secondary only the 4 week remains above 5% and just barely.

Also worth noting that the 4 week crossed under the 8 week...

Cheers.