Joined Nov 2010
L5: Journeyman
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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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I put in a good chunk as it was my IRA.
I put in a good chunk as it was my IRA.
But if you did put 1M into something, maybe consider to understand it first. Just a few posts here is not quite enough of research for a $1000 appliance, not to mention 1M investment.
912797FJ1 - 11/09/2023
912796ZD4 - 11/30/2023
Is there any substantial difference between putting an order for one or the other? Any reason this thread is primarily focused only on the 1st issue (maturity 11/09/2023) as opposed to the other one?
912797FJ1 - 11/09/2023
912796ZD4 - 11/30/2023
Is there any substantial difference between putting an order for one or the other? Any reason this thread is primarily focused only on the 1st issue (maturity 11/09/2023) as opposed to the other one?
11/9 is the CMB, 11/30 is the regular 6-month or 26-week bill. There was a thread talking about regular bills. CMB is not pre-scheduled and **may** have a better yield. That's why I would like to bring it out to everyone's attention. We will see.
912797FJ1 - 11/09/2023
912796ZD4 - 11/30/2023
Is there any substantial difference between putting an order for one or the other? Any reason this thread is primarily focused only on the 1st issue (maturity 11/09/2023) as opposed to the other one?
Edit: Ah, I now saw OP's comment above, thanks for clarifying!
But if you did put 1M into something, maybe consider to understand it first. Just a few posts here is not quite enough of research for a $1000 appliance, not to mention 1M investment.
912796ZP7
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912796ZP7
Ah, that's the info I missed. You were buying on the secondary market, not the new issues. I thought we were still talking about the CMB new issue of this thread. I don't have enough money to know much about the bond market. Wish you the best.
Thanks. Added note on APY.
I hope you are not serious, or wake up from the high tech stock craze, soon.
912796ZP7
I just want to add congrats on your trade. That's a classic to take full advantage of the debt ceiling farce-fed yield spike. The politicians are having fun, we deserve some too!
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