Secondary Treasuries

jack12 | Apr 21, 2022 | 307 posts since 2021

Here is what is available in common man quantities

11 month 185%

9 month 1656%

6 month 1285%

By comparison

New issue CDs (callable)

1 year 160%

18 month 210%

24 month 265%

I am leaning toward the 11 month

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Answers

bobert456 | Apr 22, 2022 | 187 posts since 2022

JACK - Unless I am missing something, I fully agree with you. I limit the duration, and will be going it as a ladder. HOLD TO MATURITY, so there is no realized variation in principal or interest. I also shoot for short term, but will go out 2 years just to build a yield/duration ladder.

I love IBONDS (for now), but they are limited per year, and a bit complex to set up and buy. Once fixed rates get high enough, and inflation gets under control, then I may end up selling them. For now, they are good, even if you factor in the penalty if sold before five years. OVER PAY your taxes to be eligible for another $5k IBOND using your refund.

jack12 | Apr 21, 2022 | 307 posts since 2021

Now I see a 13 month at 2058%

(My period button is broken)

The problem with new issues is they take weeks to sign up for one

Choice | Apr 21, 2022 | 937 posts since 2020

And, if one thinks rates are going down, the yield/principal increases. But, why would one want a hair cut in value in face of higher CD rates currently projected? Why is one considering any Treasury (other than Ibonds) at this time...the rationale is otherwise lacking.

jack12 | Apr 21, 2022 | 307 posts since 2021

Wow- I never heard of them

And since I am only investing $8000 they are a great idea

Sarcasm

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