Joined Nov 2010
L5: Journeyman
Popular
US Treasury CMB 161-day bill. Expected yield 5.27%, may go higher
May 25, 2023 at
02:49 PM
in
Finance
(7)
Deal Details
Last Edited by zjs2k May 31, 2023 at 02:27 AM
NOTE:
The yields listed here are annualized (APY).
The CUSIP for this CMB is 912797FJ1.
Current expected yield according to Fidelity is 5.3% (May 26), 5.268% (May 27).
Final edit: the result was out (May 30): 5.562% (investment rate, equivalent to APY).
This thread was moved out of the "Hot Deals" forum (understandably. I don't think Treasury will give SD a cut for promoting their T-Bills Haha!). Despite received much less attention than the other Treasury threads, I hope everyone read this got some useful information (like the difference between CMB and T-bills, or there are bills called CMB). I can't vouch for anyone else's comments here, but I tried to be clear about things that I know, I assume, I guess or I don't know in my comments.
Final recommendation: continue to purchase the Bills of all durations as long as they remain high yields. At 5+% yield with essentially 0 risk, it makes the risky investment in stocks / bitcoin or similar becomes less and less attractive.
=======
Since Treasury's CMB doesn't have a fixed schedule, which leads to less competitive bids, which in turn **usually"" leads to higher yield. This 161-day bill announced today has an expected yield of 5.27% according to Fidelity. But it **could** be higher. Example: last week's 21-day bill estimated yield ~ 5.5% (can't remember exactly). The final yield was 6.3+%.
Note: you can only buy it through brokers. Fidelity allows multiples of $1000 ("1 bond"). ETrade is multiples of $5000.
Seepost #163771055 for additional info on ETrade (Thanks to Jayman007)
The auction day is May 30. Be sure to place the order before then. (Before 12 AM for non-competitive CMB. Brokers may stop take orders before then. So place order early.)
https://www.treasurydir
The yields listed here are annualized (APY).
The CUSIP for this CMB is 912797FJ1.
Current expected yield according to Fidelity is 5.3% (May 26), 5.268% (May 27).
Final edit: the result was out (May 30): 5.562% (investment rate, equivalent to APY).
This thread was moved out of the "Hot Deals" forum (understandably. I don't think Treasury will give SD a cut for promoting their T-Bills Haha!). Despite received much less attention than the other Treasury threads, I hope everyone read this got some useful information (like the difference between CMB and T-bills, or there are bills called CMB). I can't vouch for anyone else's comments here, but I tried to be clear about things that I know, I assume, I guess or I don't know in my comments.
Final recommendation: continue to purchase the Bills of all durations as long as they remain high yields. At 5+% yield with essentially 0 risk, it makes the risky investment in stocks / bitcoin or similar becomes less and less attractive.
=======
Since Treasury's CMB doesn't have a fixed schedule, which leads to less competitive bids, which in turn **usually"" leads to higher yield. This 161-day bill announced today has an expected yield of 5.27% according to Fidelity. But it **could** be higher. Example: last week's 21-day bill estimated yield ~ 5.5% (can't remember exactly). The final yield was 6.3+%.
Note: you can only buy it through brokers. Fidelity allows multiples of $1000 ("1 bond"). ETrade is multiples of $5000.
Seepost #163771055 for additional info on ETrade (Thanks to Jayman007)
The auction day is May 30. Be sure to place the order before then. (Before 12 AM for non-competitive CMB. Brokers may stop take orders before then. So place order early.)
https://www.treasurydir
220 Comments
Your comment cannot be blank.
Sign up for a Slickdeals account to remove this ad.
certainly, there is a learning curve to start buying these bond
I never managed to even create an usdirect account... as they asked for some information that I cannot offer easily.
That's because it won't be paid it default and stays
Thank you.
Edit: I see the problem. If I transfer money today it won't be settled before the auction.
Take at look at this, Titan Treasury is currently offering 4.96% APY. I have my money in there, let me know if need any details
https://www.titan.com/strategies/treasury
open up a bunch of bank accounts for 90 days. 16k is literally what i'm scrapping together for a bunch of bank bonuses lol
Asking if this idea goes viral and a ton of money pours into the next auction, will everyone's yield be significantly worse than what we could be doing in other short term instruments.
Thank you.
Edit: I see the problem. If I transfer money today it won't be settled before the auction.
Sign up for a Slickdeals account to remove this ad.
chase had the checking and savings for a total of 600 for 90 days. i was told to leave in bank for 4 months just in case but i'm withdrawing immediately afterwards
Old debts get defaulted on.. new debts less likely.. cause they need the money.
https://investor.vangua
For Fidelity at least, they will let you use your money to place order the same day of the transfer. There won't be any problem particularly this isn't a new bank link.
I pretty much put all my savings in treasury now except some for monthly bills. Some investment money also moved there since the stock market is not the place to be unless for shorts. I order a few treasury every week, always one bond a time. you never know when and which one will have higher yield.
Sign up for a Slickdeals account to remove this ad.
Someone already answered correctly. This is a much flexible way for treasury to get some extra money. I don't know if recent abundant CMB related to the debt ceiling thing. But we should all take advantage of the high yields.
CMB usually (maybe always) added on top of previously issued bills. Depending on the announcement day and the original bill mature day, we got all the weird duration for CMB. If you check their announcement, there is always some outstanding already, which was the bills sold in the original issues.