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One-Year Treasury Constant Maturity T bill 4.14
September 25, 2022 at
03:59 PM
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Finance
(4)
Deal Details
Last Edited by BeAuMaN | Staff September 25, 2022 at 09:22 PM
I don't know that much about this. Sharing here to get some feedback. It seems it is highr than CD
Treasury Bills
Treasury bills, or T-bills, are sold in terms ranging from a few days to 52 weeks. Bills are typically sold at a discount from the par amount (par amount is also called face value); rarely, they have sold at a price equal to the par amount.
When a bill matures, you are paid its par amount. If the par amount is greater than the purchase price, the difference is your interest.
You can buy bills from us in TreasuryDirect. You can also buy them through a bank or broker. (We no longer sell bills in Legacy Treasury Direct, which we are phasing out.)
You can hold a bill until it matures or sell it before it matures.
Learn more in "Treasury Bills in Depth"
Buy T-Bills in TreasuryDirect
Use Treasury bills to:
Diversify your investment portfolio
Participate in a secure, short-term investment
More about Treasury bills in the Research Center
at a glance
Original Issue Rate: The discount rate determined at auction.
See rates in recent auctions
Minimum Purchase: $100
Maximum Purchase
(in a single auction): Noncompetitive - $10 million
Competitive - 35% of offering amount
(See types of bidding in "Auctions in Depth")
Investment Increment: Multiples of $100
Issue Method: Electronic
Rates & Terms
Treasury bills are issued for terms of 4, 8, 13, 26, and 52 weeks. Another type of Treasury bill, the cash management bill, is issued in variable terms.
4-week, 8-week, 13-week, 26-week, and 52-week bills are auctioned on a regular schedule.
Cash management bills aren't auctioned on a regular schedule.
More about Treasury Bills rates and terms in the Research Center
Redemption Information
Minimum Term of Ownership: In TreasuryDirect, 45 days
Interest-Earning Period: To maturity
More about Treasury Bills redemption in the Research Center
Tax Considerations
Interest income is exempt from state and local income taxes.
Interest income is subject to federal income tax.
More about Treasury Bills tax considerations in the Research Center
https://www.treasurydir
https://home.treasury.g
Treasury Bills
Treasury bills, or T-bills, are sold in terms ranging from a few days to 52 weeks. Bills are typically sold at a discount from the par amount (par amount is also called face value); rarely, they have sold at a price equal to the par amount.
When a bill matures, you are paid its par amount. If the par amount is greater than the purchase price, the difference is your interest.
You can buy bills from us in TreasuryDirect. You can also buy them through a bank or broker. (We no longer sell bills in Legacy Treasury Direct, which we are phasing out.)
You can hold a bill until it matures or sell it before it matures.
Learn more in "Treasury Bills in Depth"
Buy T-Bills in TreasuryDirect
Use Treasury bills to:
Diversify your investment portfolio
Participate in a secure, short-term investment
More about Treasury bills in the Research Center
at a glance
Original Issue Rate: The discount rate determined at auction.
See rates in recent auctions
Minimum Purchase: $100
Maximum Purchase
(in a single auction): Noncompetitive - $10 million
Competitive - 35% of offering amount
(See types of bidding in "Auctions in Depth")
Investment Increment: Multiples of $100
Issue Method: Electronic
Rates & Terms
Treasury bills are issued for terms of 4, 8, 13, 26, and 52 weeks. Another type of Treasury bill, the cash management bill, is issued in variable terms.
4-week, 8-week, 13-week, 26-week, and 52-week bills are auctioned on a regular schedule.
Cash management bills aren't auctioned on a regular schedule.
More about Treasury Bills rates and terms in the Research Center
Redemption Information
Minimum Term of Ownership: In TreasuryDirect, 45 days
Interest-Earning Period: To maturity
More about Treasury Bills redemption in the Research Center
Tax Considerations
Interest income is exempt from state and local income taxes.
Interest income is subject to federal income tax.
More about Treasury Bills tax considerations in the Research Center
https://www.treasurydir
https://home.treasury.g
112 Comments
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You buy bonds from from
uncle Sam for at least $100. The % interest rate is pretty much better than putting your money in the bank or most other places.
2.) Select News & Research -> Fixed Income, Bonds & CDs at the top.
3.) The table at the bottom will break out different kinds of bonds (US Treasuries, municipal bonds, corporate, etc.). Select the duration that you're interested in.
4.) This will bring up a table sorted by the Ask Yield. (The Ask Yield is what you'll get, but annualized). Note that the maturity date on the left is when the bond will come due.
Note that after step 2, you could also click on the "Bonds" tab next to the "Yields" tab. You can use this to filter and sort the options that would come up in the table in step 4.
401k is a LONG teem vessel..its not timing the market its your time in the market, historically the market has always bounced back. just buy more now while the market is ON SALE...remember buy low sell high?
very hard to time the market...what if the market went the other way, like it usually does...you missed out on 10-15% gains...cant time the market, its time in the market!
historically, market is the only place to beat inflation.
Consider that bond income will be ordinary income, taxed by ordinary income brackets. For most people those brackets are lower in retirement than they are in their working years. With stocks in your 401k, you'd likely be taxed at long term capital gains or qualified dividend rates, which are typically lower than ordinary income rates. In short, if the bonds returned the same as the stocks, you'd actually get greater benefit from them in 401k than you would with stocks, ignoring the effects of state/local income taxes.
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Unless you get the dreaded "we cannot verify you online, send in the form 5444", which can take 6 weeks.
Lesson: open a treasury account right away and then figure out if you need to buy bonds, notes, bills, etc
2.) Select News & Research -> Fixed Income, Bonds & CDs at the top.
3.) The table at the bottom will break out different kinds of bonds (US Treasuries, municipal bonds, corporate, etc.). Select the duration that you're interested in.
4.) This will bring up a table sorted by the Ask Yield. (The Ask Yield is what you'll get, but annualized). Note that the maturity date on the left is when the bond will come due.
Note that after step 2, you could also click on the "Bonds" tab next to the "Yields" tab. You can use this to filter and sort the options that would come up in the table in step 4.
401k is a LONG teem vessel..its not timing the market its your time in the market, historically the market has always bounced back. just buy more now while the market is ON SALE...remember buy low sell high?
very hard to time the market...what if the market went the other way, like it usually does...you missed out on 10-15% gains...cant time the market, its time in the market!
historically, market is the only place to beat inflation.
this!
Consider that bond income will be ordinary income, taxed by ordinary income brackets. For most people those brackets are lower in retirement than they are in their working years. With stocks in your 401k, you'd likely be taxed at long term capital gains or qualified dividend rates, which are typically lower than ordinary income rates. In short, if the bonds returned the same as the stocks, you'd actually get greater benefit from them in 401k than you would with stocks, ignoring the effects of state/local income taxes.
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