Good deal on treasuries vs CDs right now

Discussion of the Cash portion of the Permanent Portfolio

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whatchamacallit
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Good deal on treasuries vs CDs right now

Post by whatchamacallit » Wed Jan 19, 2022 9:26 pm

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
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jhogue
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Re: Good deal on treasuries vs CDs right now

Post by jhogue » Fri Jan 21, 2022 9:01 am

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!"
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I Shrugged
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Re: Good deal on treasuries vs CDs right now

Post by I Shrugged » Fri Jan 21, 2022 1:59 pm

jhogue wrote:
Fri Jan 21, 2022 9:01 am
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.
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dualstow
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Re: Good deal on treasuries vs CDs right now

Post by dualstow » Fri Jan 21, 2022 6:22 pm

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.
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jhogue
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Re: Good deal on treasuries vs CDs right now

Post by jhogue » Tue Jan 25, 2022 8:52 am

dualstow wrote:
Fri Jan 21, 2022 6:22 pm
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.
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!"
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dualstow
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Re: Good deal on treasuries vs CDs right now

Post by dualstow » Tue Jan 25, 2022 10:02 am

I have both. The bullet is part of my vp.
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whatchamacallit
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Re: Good deal on treasuries vs CDs right now

Post by whatchamacallit » 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?
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Re: Good deal on treasuries vs CDs right now

Post by vnatale » Tue Mar 29, 2022 8:04 pm

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%!
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whatchamacallit
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Re: Good deal on treasuries vs CDs right now

Post by whatchamacallit » Sun Apr 10, 2022 9:29 pm

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.
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