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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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My bank is giving 3.9% for interest (capital one). I wouldn't say it's emergency money per se. My plan is to save for a house, if the market improves. By EOY the balance should double. I have a strict budget
If you are thinking ahead until end of the year, you should do graduate purchase of treasury to capture any potential higher future yields.
You can always start a Fidelity brokerage account if you are determined to own CMBs. Fidelity brokerage and checking are considered top notch.
If you are thinking ahead until end of the year, you should do graduate purchase of treasury to capture any potential higher future yields.
I'm going to research this tbill stuff when I'm off.
I'm going to research this tbill stuff when I'm off.
I am not talking about speculation, I am talking about investment. When in 20s, you should plan for the next a few decades, not next a few weeks, not to mention days or hours. I wish I knew that when I was in 20s.
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I'm going to research this tbill stuff when I'm off.
The best financial decision would be to save for house cash. Even if it's smaller than desired. You'll save ten or hundreds of thousands in interest rates. Plus, it goes up in value. Buying a house should be your first priority financially. Unless you have debt. Paying that debt would come first.
Unless those cds were with silicone valley bank.
Fidelity only had my HSA and 401k so i had to add my checking account and that won't become active for a few days.
hopefully the rates will still be this good next week?
Not much mentioned in this thread are federal money market funds. They are highly liquid and almost always can be bought or sold for $1. Currently, Vanguards Treasury Money Market Fund, VUSXX, shows a 5.03% yield. A month or so ago I was able to sell and move the proceeds from VUSXX to my checking account in 2 days.
You can check doctorofcredit.com
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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.
Yes, she promotes membership in her 'Supersavers club' but she's knowledgeable, to the point and the information is aimed at novices. There are certain advantages to not using Treasury Direct.
Highly recommend: https://youtu.be/rFuiC-UNeMc [youtube.com]