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I see 1-year Treasuries at 4.9% currently, and six month ones at 5.2%: https://ustreasuryyieldcurve.com/ But that assumes you are buying Treasuries directly I imagine.
If you purchase newly issued CDs, the yield to maturity is exactly as issued... that isn't affected by market gyrations. Treasuries available at a brokerage, on the other hand, will continually fluctuate in yield as the market dictates.
Strong rally in bonds. But now we have to deal with the inflation tomorrow. Imagine the horrors of a strong inflationary print and banking halts. Don’t envy the FED.
If you plan to buy equities if they come on sale, treasuries probably better idea.
So if I buy a 6 month treasury, is it pretty easy to sell it prior to maturity? I understand it’s possible that I could lose some principal if rates go back up….
I will let others speak to the ease of selling Treasuries at Schwab etc, as I have held all of mine to maturity
However I have bought many and as long as you are willing to accept the price offered ( I am not savy enough to try to "play " the treasury market ) it is just one click on the "order button"
Remember though that unlike stocks and etfs etc, they settle that day so you have to have cash or a sweep account to cover the cost
I learned the hard way and Schwab charged me for a margin loan when I bought a treasury the same day as selling some stock. When I complained ignorance, they forgave the $3.2
Yes, one could LOSE money by selling T-Bills/Notes or CDs before MATURITY. But Treasuries being very liquid, loss may be minor (rate dependent only), but for brokered CDs without much secondary market, the haircut may be big (like a buzz-cut?).
Both will show FLUCTUATING values in the statements. Both will pay PAR/FACE VALUE at maturity.
Buy 3 mo, 6 mo and 12 mo treasury bills and hold till maturity as a ladder. Every 3 months you will have cash available. Build a second ladder 6 weeks later in between the first one in order to reduce time for available cash.
Buying at auction (pay attention to the schedule) is easiest way to get started.
In the aftermath of 3 US bank failures in 4 days, there is now lot of money shifting from small local and regional banks to BIG banks. One consequence of this is that small/regional banks are forced to offer higher rates for brokered CDs. Just in case you were wondering.
Note: Schwab Bank is among the offerings @5.4%, so this group may be under some pressure.
Additional Note: @ Wednesday, 1:59 pm PST: Schwab & a couple of other 5.4% offerings no longer available- already subscribed? That was fast.
Yet more: @ Wednesday, 2:09 pm PST: New listing- but not a new offering...
HomeStreet Bank WA 4.75% CD 12/01/2023 Offered at discount: price: 99.455 / YTM: 5.543%. Seems like a solid vote of "no confidence" in HomeStreet Bank WA
Yet more: @ Wednesday, 2:25 pm PST: HomeStreet Bank listing gone- somebody liked it.
I’m loving the higher yields on cash. I retired six years ago, and this is the first time I’ve been able to get decent returns on cash, except for a brief period a couple years ago. As a result, I haven’t held as much in cash reserves as a retiree probably should. However, I’ve been able to load up on CDs yielding 5% and higher lately, in addition to our maximum limits on i-Bonds. When the new rates are announced for I-Bonds, I’ll decide whether to cash them out or continue holding. I’m not fooling with treasuries because the yields on CDs are higher and I’ve been laddering them so I’ve got cash available with regularity. Plus we’re keeping a healthy amount in Fidelity money markets yielding well over 4% right now. This has been a pleasant turn of events considering the total disaster bond funds have been for protecting assets.
I bought some Friday, but just couldn't pull the trigger on that Schwab CD. Schwab is selling $8 Billion worth I have read. While they are unlikely to follow SVB, they might.
I stuck with MS, GS and JBM for a few bp less yield.
I also bought some 3 and 6 mo Treasuries at the lower yields, figuring that if the SHTF yields will drop dramatically and I may need to sell to fund stock buys
Comments
But that assumes you are buying Treasuries directly I imagine.
If you plan to buy equities if they come on sale, treasuries probably better idea.
So if I buy a 6 month treasury, is it pretty easy to sell it prior to maturity? I understand it’s possible that I could lose some principal if rates go back up….
However I have bought many and as long as you are willing to accept the price offered ( I am not savy enough to try to "play " the treasury market ) it is just one click on the "order button"
Remember though that unlike stocks and etfs etc, they settle that day so you have to have cash or a sweep account to cover the cost
I learned the hard way and Schwab charged me for a margin loan when I bought a treasury the same day as selling some stock. When I complained ignorance, they forgave the $3.2
Both will show FLUCTUATING values in the statements. Both will pay PAR/FACE VALUE at maturity.
Buying at auction (pay attention to the schedule) is easiest way to get started.
https://cnbc.com/bonds/
Please see the other posting for the reason:
https://mutualfundobserver.com/discuss/discussion/60810/dow-futures-fall-500-points-as-credit-suisse-shares-drop-more-than-20
"Today [non-callable]:
1yr CD: 5.35%
5yr CD: 5.00%
1yr T-bill: 4.45%
5yr T-note: 3.78%"
Twitter LINK
1yr CD: 5.4%
1yr T-bill: 4.744%
Note: Schwab Bank is among the offerings @5.4%, so this group may be under some pressure.
Additional Note: @ Wednesday, 1:59 pm PST:
Schwab & a couple of other 5.4% offerings no longer available- already subscribed? That was fast.
Yet more: @ Wednesday, 2:09 pm PST: New listing- but not a new offering...
HomeStreet Bank WA 4.75% CD 12/01/2023 Offered at discount: price: 99.455 / YTM: 5.543%.
Seems like a solid vote of "no confidence" in HomeStreet Bank WA
Yet more: @ Wednesday, 2:25 pm PST: HomeStreet Bank listing gone- somebody liked it.
I bought some Friday, but just couldn't pull the trigger on that Schwab CD. Schwab is selling $8 Billion worth I have read. While they are unlikely to follow SVB, they might.
I stuck with MS, GS and JBM for a few bp less yield.
I also bought some 3 and 6 mo Treasuries at the lower yields, figuring that if the SHTF yields will drop dramatically and I may need to sell to fund stock buys
"May you live in interesting times"