Treasury Bills, Notes, and Bonds Discussion 2024+

[ziggy29]

Today’s 10-year TIPS auction has a real yield of 1.940% with an inflation breakeven of 2.31%. I’m happy with that result and another step in the ladder done.

Not bad. I built a TIPS ladder last year for expected portfolio income needs from 2028 to 2035 (from when my wife expects to retire until my SS kicks in at age 70), in order to reduce sequence of returns risk during a period of elevated withdrawal rates. I actually used the ETFs to do it (IBIE through IBIL). I know there is a 0.10% hit on the fee. BUT -- I hold these in a Fidelity IRA, and these securities are enrolled in their Fully Paid Lending Program. These shares seem to get borrowed a lot, and I'm not sure why.

Anyway, the income I'm getting from these borrowed shares has greatly exceeded the fee! I've owned this ETF-based TIPS ladder for about a year now, and the income from the lending has been more than 0.4% of the value of the holdings. So I've been getting 4x as much in income from the fully paid lending program as I'm losing in the fee on these ETFs. I fully intend to hold to maturity, so the fluctuations in value don’t bother me.

 

[Chuckanut]

Here’s a quote from TIPSWATCH on X…..

Deutsche Bank strategists see the yield on 10-year US notes rising to a peak of 4.70% by December, from about 4.45% on Friday.

 

[Trailwalker]

The two year note has been creeping up. I dipped into this week's auction in preparation for my daughter's potential wedding. Yield was 4.189

 

[elvis76]

New year, so time for a new thread! The previous one is over 2500 posts.

You can see the upcoming auctions and most recent treasury auction results here: Upcoming Auctions — TreasuryDirect

Link back to the prior thread: Treasury Bills, Notes, and Bonds Discussion

That previous thread has a lot of tutorial information in the first several pages so it’s very useful as a reference. Lots of our posters came up the learning curve on buying treasuries since jazz4cash started that thread on 8-31-22.

Good to have this thread going for another year. It's a great spot to keep track of the latest auctions.

 

[JoeWras]

Today's 52-week bill pushed through 4%, just barely. First time in quite a while, about a year if I recall.

 

[QG67PK00]

yes, see plot below.