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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.
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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
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Tell me I'm wrong someone so I can hold my nose and buy.
Edit - I just checked Vanguard and they have a 3 month Treasury at 6.785% on 300K minimum.
100,000
United States Treas Bills
06/06/2023
0.000 99.870
99.882 6.785%
CUSIP?
Shahhere
Thank you.
Edit: I see the problem. If I transfer money today it won't be settled before the auction.
*someone please confirm this to be correct.
My Vanguard Federal Money Market account holds my cash, and it yields about 5% now. The bond yield mentioned in this thread is 5.27%. The difference doesn't seem big. Is it worthwhile to shift the cash from MM to this bond?
You will lose the state tax exemption if you buy treasury within an IRA. Look at brokered CD rates instead.
Worst ever website to deal with. Last year, I accidently mistyped my password and I got lockout. I tried calling their phone number, more than 13 times, and I got tapped recording. I emailed their website, and the message said something like "No response".
On Vanguard: Seeing a 5.5% JP Morgan rate for Brokered CD but its Callable. My understanding is that with that they can stop paying if gets called?
Shahhere
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I was doing exactly the same thing, buying in IRA and Fidelity did not allow me.
Bank of America CD is 5.1%: buying CD in IRA will not affect the tax status?
I don't know about the CMB's but T-Bills take first priority in payment in a default. SS, military, fed employees will all be delayed. They have money it will just be prioritized and may take awhile.
If that's your emergency fund that would be painfully bad move. If any of that money is your reserves for the next 6-12 months If you started making zero income, then it's right where it belongs in a savings account.
You look at the book price. The lowest price is usually reserved for orders of 100-1000 ($100,000 - 1,000,000) If you are buying less than 50 or 100, then usually you'll have to find the column that say minimum order "1000(1)".
If you are in the bonds tab, those are the secondary market. Up to 6.75% interest last time I checked a couple days ago. If you want new T-bill auctions, you have to go to the "New Issues" tab then select "Treasury".
Worst ever website to deal with. Last year, I accidently mistyped my password and I got lockout. I tried calling their phone number, more than 13 times, and I got tapped recording. I emailed their website, and the message said something like "No response".
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Still poor logic if your money is in a bank account. The T-bills are even more backed than FDIC accounts. Even in a default, the government still will decide what it wants to fund first and what it wants to default on paying. T-bills are at the very top of the hierarchy.
The United States still controls the fiat currency, meaning a true default, as in no money to pay debt holders, is currently impossible. Our politicians will continue to spend with wreckless abandon, debt will be deleveraged by printing more currency, inflation will result, and those sitting on the sidelines waiting will have the greatest loss of wealth.