Good deal on treasuries vs CDs right now
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Good deal on treasuries vs CDs right now
Looks like treasuries are on sale right now.
3 year through 7 year CDs are paying less than same term treasuries. I can't recall seeing this previously. Banks have better credit worthiness than US treasury all of a sudden?
https://personal.vanguard.com/us/FixedIncomeHome
https://www.depositaccounts.com/cd/3-year-cd-rates.html
https://www.treasury.gov/resource-cente ... data=yield
3 year through 7 year CDs are paying less than same term treasuries. I can't recall seeing this previously. Banks have better credit worthiness than US treasury all of a sudden?
https://personal.vanguard.com/us/FixedIncomeHome
https://www.depositaccounts.com/cd/3-year-cd-rates.html
https://www.treasury.gov/resource-cente ... data=yield
Re: Good deal on treasuries vs CDs right now
Given the present burst of inflation in the CPI-U index, I cannot see buying either T-notes or 3-7 year CDs. Current nominal yields for those securities seem guaranteed to produce negative returns.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
- I Shrugged
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- dualstow
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Re: Good deal on treasuries vs CDs right now
Looks like the 7-year note is paying almost as much as the 10-year, and the 20-yr is paying *more* than the 30-yr.
Re: Good deal on treasuries vs CDs right now
I bonds make it easier for me to stick with the barbell, not the bullet.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
- dualstow
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Re: Good deal on treasuries vs CDs right now
I have both. The bullet is part of my vp.
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Re: Good deal on treasuries vs CDs right now
Absolute steal of a deal on 3 year treasuries right now.
Treasuries are paying 2.55 % while 36 month CDs are paying mostly around 1.25%.
Is this just a complete lack of education? How can banks get any bites at these rates?
Treasuries are paying 2.55 % while 36 month CDs are paying mostly around 1.25%.
Is this just a complete lack of education? How can banks get any bites at these rates?
- vnatale
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Re: Good deal on treasuries vs CDs right now
whatchamacallit wrote: ↑Tue Mar 29, 2022 5:25 pm
Absolute steal of a deal on 3 year treasuries right now.
Treasuries are paying 2.55 % while 36 month CDs are paying mostly around 1.25%.
Is this just a complete lack of education? How can banks get any bites at these rates?
I see that this, though,
Vanguard Treasury Money Market Fund (VUSXX)
...still has a current yield of only 0.19%!
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Good deal on treasuries vs CDs right now
A thought I realized. Cash is no doubt the hated asset right now. Seems like it could be the asset on sale right now then.
U.S. 6M 1.1803
U.S. 1Y 1.7944
U.S. 2Y 2.5608
U.S. 3Y 2.7765
https://www.investing.com/rates-bonds/u ... ment-bonds
2 year looks like a nice sweet spot at 2.56.
U.S. 6M 1.1803
U.S. 1Y 1.7944
U.S. 2Y 2.5608
U.S. 3Y 2.7765
https://www.investing.com/rates-bonds/u ... ment-bonds
2 year looks like a nice sweet spot at 2.56.