Gyroscopic Investing

First of all, thank you for bringing treasury direct to my attention with the I Bond offering.

I have limited experience with treasury direct.

Considering that t-bills and treasury only money market funds are paying zero interest, bordering negative interest... And now that funds like the vanguard treasury only mmf is branching into other government securities...

Is the TreasuryDirect C of I a good alternative to money market funds and/or owning T bills directly? I noticed that the website says your funds are available in your bank account within two business days.

It seems this has lower counterparty risk than vanguard changing their formula in response to current market conditions... Increasing risk, even if so ever slightly.

Why is using this a bad idea?

Sounds like a potential loop hole if rates go negative and they leave it in place.

I would rather have FDIC high rate savings at .5 % than the zero rate treasury direct and also FDIC instead of money market for that matter.

Sounds like these funds are outside of retirement account so you have better options than money market.

I would also want to max out I and ee bonds before FDIC.

Certificates of Indebtedness are guaranteed 0% securities designed to facilitate electronic payroll plan purchases of Treasury securities or US savings bonds. I have never purchased them because I only use my TreasuryDirect account to make direct purchases of US savings bonds with electronic transfers from my brokerage account.

It is not a “bad idea” per se, but I do not see the point for HBPP investors to hold a guaranteed 0% security in a TreasuryDirect account. At present, my Treasury money market fund has a positive-- if microscopic-- yield. If I was afraid the T-bill interest rate might fall below 0% I would simply start holding cash (greenbacks) in my safe deposit box or personal possession.