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Re: Negative 1 and 3 Month Treasury Rates

Posted: Wed Apr 07, 2021 3:32 pm
by jalanlong
mathjak107 wrote:
Fri Apr 02, 2021 5:56 am
Fund families are keeping the money markets positive by waiving expenses ....you may be better off in them then say something like bil
I noticed that my cash ETF GBILL hasn’t paid interest all year since the .09% expense ratio outweighs treasury bill returns at the moment. SHV hasn’t paid anything out this year either.

Re: Negative 1 and 3 Month Treasury Rates

Posted: Wed Apr 07, 2021 3:49 pm
by mathjak107
My fdlxx has been paying under a buck on 6 figures in cash .

But at least the fund families seem to be waiving the expenses while etfs are not

Re: Negative 1 and 3 Month Treasury Rates

Posted: Wed Apr 07, 2021 5:03 pm
by jhogue
The HBPP prescribes a Treasury money market fund for safety and liquidity, not yield. Chasing yield in cash is not necessary and can potentially lead to problems with safety and liquidity at the moment that you can least afford it.

BTW, the nominal yield of a 1 year Treasury zero stands at -0.01% today. Real yields of STTs have been negative for some time now. I note, in passing, that low Treasury yields have not stopped Warrant Buffet from piling up his stash of Treasurys estimated at more than $100 billion. He does not hold high-yield bonds, muni bonds, bank-sponsored repos, or currency swaps. Do you wonder why that is?

Re: Negative 1 and 3 Month Treasury Rates

Posted: Wed Apr 07, 2021 5:04 pm
by mathjak107
They both are treasuries only one is loosing money in the etf as no expenses seem to be waived

Re: Negative 1 and 3 Month Treasury Rates

Posted: Wed Apr 21, 2021 3:33 pm
by whatchamacallit

Re: Negative 1 and 3 Month Treasury Rates

Posted: Wed Apr 21, 2021 6:29 pm
by I Shrugged
jhogue wrote:
Wed Apr 07, 2021 5:03 pm
The HBPP prescribes a Treasury money market fund for safety and liquidity, not yield. Chasing yield in cash is not necessary and can potentially lead to problems with safety and liquidity at the moment that you can least afford it.

BTW, the nominal yield of a 1 year Treasury zero stands at -0.01% today. Real yields of STTs have been negative for some time now. I note, in passing, that low Treasury yields have not stopped Warrant Buffet from piling up his stash of Treasurys estimated at more than $100 billion. He does not hold high-yield bonds, muni bonds, bank-sponsored repos, or currency swaps. Do you wonder why that is?
I do.

Re: Negative 1 and 3 Month Treasury Rates

Posted: Wed Apr 21, 2021 7:32 pm
by jhogue
I think it is quite simple: Buffett is more concerned with the return of his money than he is with the return on his money. In other words, safety and liquidity must come before yield.

Re: Negative 1 and 3 Month Treasury Rates

Posted: Fri Apr 23, 2021 5:56 pm
by mathjak107
jhogue wrote:
Wed Apr 21, 2021 7:32 pm
I think it is quite simple: Buffett is more concerned with the return of his money than he is with the return on his money. In other words, safety and liquidity must come before yield.
He made so many poor buys and subsequent sales you have to wonder if that is true...he has underperformed a simple S&P fund for 15 years which gas no individual company risk either

Re: Negative 1 and 3 Month Treasury Rates

Posted: Thu Apr 29, 2021 5:56 pm
by whatchamacallit
https://www.treasury.gov/resource-cente ... data=yield



1, 2 and 3 month all .01 last two days. Closer and closer to 0.

Re: Negative 1 and 3 Month Treasury Rates

Posted: Thu Apr 29, 2021 11:50 pm
by Don
mathjak107 wrote:
Fri Apr 23, 2021 5:56 pm
jhogue wrote:
Wed Apr 21, 2021 7:32 pm
I think it is quite simple: Buffett is more concerned with the return of his money than he is with the return on his money. In other words, safety and liquidity must come before yield.
He made so many poor buys and subsequent sales you have to wonder if that is true...he has underperformed a simple S&P fund for 15 years which gas no individual company risk either
He's been doing well recently and overperforming

Re: Negative 1 and 3 Month Treasury Rates

Posted: Fri Apr 30, 2021 2:44 am
by mathjak107
It only took him 15 years to get lucky again