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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 found it as you noted on etrade. CUSIP 912797FJ1
But, it seems the Quantity minimum entry is "100k" (I think..) thus, do you need something like a $100k of funds in your account to buy?
Next there are 2 variables to choose:
1. Price = 97.68
2. Yield = 5.327
I am not sure if I am doing something wrong, as I tried a bunch on numbers and clicked on different options but eTrade keeps erroring me out saying I have insufficient funds since I currently have less than $100k in my acct.
< cut >
Note: you can only buy it through brokers. Fidelity allows multiples of $1000 ("1 bond"). ETrade is multiples of $5000.
The auction day is May 30. Be sure to place the order before then. (Before 11 AM, I think. Don't quote me on that. So just order now.)
Go to trading
go to bonds and CDs
The first thuing you see is US treasuries.
I found it as you noted on etrade. CUSIP 912797FJ1
But, it seems the Quantity minimum entry is "100k" (I think..) thus, do you need something like a $100k of funds in your account to buy?
Next there are 2 variables to choose:
1. Price = 97.68
2. Yield = 5.327
I am not sure if I am doing something wrong, as I tried a bunch on numbers and clicked on different options but eTrade keeps erroring me out saying I have insufficient funds since I currently have less than $100k in my acct.
< cut >
Note: you can only buy it through brokers. Fidelity allows multiples of $1000 ("1 bond"). ETrade is multiples of $5000.
The auction day is May 30. Be sure to place the order before then. (Before 11 AM, I think. Don't quote me on that. So just order now.)
It is available in the auctions section. Not through cusip search.
Also, you can't get CMB through treasurydirect. It can only be bought through a broker, like Fidelity, Vanguard, etc.
I found it as you noted on etrade. CUSIP 912797FJ1
But, it seems the Quantity minimum entry is "100k" (I think..) thus, do you need something like a $100k of funds in your account to buy?
Next there are 2 variables to choose:
1. Price = 97.68
2. Yield = 5.327
I am not sure if I am doing something wrong, as I tried a bunch on numbers and clicked on different options but eTrade keeps erroring me out saying I have insufficient funds since I currently have less than $100k in my acct.
< cut >
Note: you can only buy it through brokers. Fidelity allows multiples of $1000 ("1 bond"). ETrade is multiples of $5000.
The auction day is May 30. Be sure to place the order before then. (Before 11 AM, I think. Don't quote me on that. So just order now.)
If you need to put in a price or yield, you are placing competitive bid, which usually have a much higher minimum order. What you want is non-competitive bid where you don't put in any price or yield. You will get whatever the yield set at the auction on May 30.
I went to the bonds and CD's and entered the CUSIP 912797FJ1 into the search box and it came right up. I then selected 'buy' and then on the next page under quantity I run into issues. The quantity box has ,000 after it. Leading me to believe if I put in 1, then that is 1000. But any number I put in here under 1000 throws an error that the minimum is 1000. But if I put 1000 into this box it throws an error that I have insufficient funds. Although is says right on the same screen that I have "Pre-Trade Purchasing Power: $2000.00"
Also, I must select either a price box or a Yield box. Both have pre populated amounts. No matter which I select, I get the same errors as listed above.
Any suggestions?
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May be I am late
Any other good options now? I see 1mo, 2mo, and 17week bills on my etrade acct.
May be I am late
Any other good options now? I see 1mo, 2mo, and 17week bills on my etrade acct.
Just a few notes I learned while doing this (first timer).
- The minimum amount to get in on the auction is 5k with E*Trade. The min to get in on the secondary market is 1k.
- It is possible to push funds from a Chase account in real-time (even weekends) to an E*Trade savings account. You can then transfer from the E*Trade savings to a trading account in real-time as well.
- My order settled as follows.. Buy 5000 912797FJ1 Executed @ $97.611833
- No fees were involved in this order
A few questions still remain.So I think this means that I paid $4,880.59165 and when the term is up, I will receive $5000 back. This would mean I made 2.446595793360422% on my investment.
- Did all of us execute at the same price? OP updated the post to show a 5.562% APY. If I'm doing the math correctly, I got a 5.546630214761205% APY
- If I want to keep investing every couple weeks into 4-24 week Tbonds, what is the best way to do this?
I have certainly learned a lot from this thread and I'm still trying to learn more. Thank you all.Sign up for a Slickdeals account to remove this ad.