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Good deal on treasuries vs CDs right now
Posted: Wed Jan 19, 2022 9:26 pm
by whatchamacallit
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
Re: Good deal on treasuries vs CDs right now
Posted: Fri Jan 21, 2022 9:01 am
by jhogue
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.
Re: Good deal on treasuries vs CDs right now
Posted: Fri Jan 21, 2022 1:59 pm
by I Shrugged
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.
Sometimes you have to buy the best horse at the glue factory.
Re: Good deal on treasuries vs CDs right now
Posted: Fri Jan 21, 2022 6:22 pm
by dualstow
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
Posted: Tue Jan 25, 2022 8:52 am
by jhogue
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.
Re: Good deal on treasuries vs CDs right now
Posted: Tue Jan 25, 2022 10:02 am
by dualstow
I have both. The bullet is part of my vp.
Re: Good deal on treasuries vs CDs right now
Posted: Tue Mar 29, 2022 5:25 pm
by whatchamacallit
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?
Re: Good deal on treasuries vs CDs right now
Posted: Tue Mar 29, 2022 8:04 pm
by yankees60
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%!
Re: Good deal on treasuries vs CDs right now
Posted: Sun Apr 10, 2022 9:29 pm
by whatchamacallit
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.