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Savers....We're In Trouble. 1 Mo. U.S. Treasury Yields

MAKNYC
  |     |   324 posts since 2015

28 Day Treasury

Coupon Equiv Yield

03/30/2023 4.69

03/31/2023 4.69

04/03/2023 4.65

04/04/2023 4.61

04/05/2023 4.57

04/06/2023 4.53

04/07/2023 4.52

04/10/2023 4.48

04/11/2023 4.17

04/12/2023 4.12

04/13/2023 4.06

The Good News: This might be due to technical factors where financial institutions are desperate for risk free collateral.

The Bad News: If this persists you know it will somehow affect our available savings account rates

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_bill_rates&field_tdr_date_value=2023

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9


John19
  |     |   397 posts since 2022
I was going to buy some this week, glad I didn't.
Reply
2
w00d00w
  |     |   360 posts since 2012
money market funds would be interested in putting some inflow to work in the one month treasury. perhaps a surging demand for MMFs since mid-March is a major factor in driving the 1 month yield lower.
Reply
2
Infinityy
  |     |   107 posts since 2020
Most of the money market funds are parking cash in reverse repurchase agreements with the New York Fed at 4.8%
Reply
4
sams1985
  |     |   781 posts since 2022
Treasuries having a good day today...any news?
Reply
4
DMC
  |     |   46 posts since 2023
What is going on here?! 3.25 at today's auction. Are people piling into the 4-week and avoiding anything else under 6 months given debt ceiling concerns? If I'm right about that, then presumably that will reverse as the cliff gets closer because people will not want to be in 4-week T-bills that could mature during that time, so 4-week rates will start to climb again dramatically and the rates on longer term bills maturing after the cliff will fall. 

So what is a T-bill investor to do? Maybe just go back to a HYSA? For the first time in a while a top HYSA now beats the 4-week T-bill rate even on a tax adjusted basis (by quite a bit). Not that those wouldn't also be impacted by some kind of debt crisis/default. Fun times. . .
Reply
4
sams1985
  |     |   781 posts since 2022
I saw that..Insane spread on the 1 month and 3 month - 3.89% vs 5.2%. I think that's an all time record.
Reply
5
txFish1
  |     |   479 posts since 2023
I logged on to my Fidelity account earlier and went to Fixed Income and had to do a double take as I thought the 4 week rate had to be wrong!
Reply
5
DMC
  |     |   46 posts since 2023
Looks like I'm on to something:

https://markets.businessinsider.com/news/bonds/debt-default-ceiling-deadline-treasury-market-july-yields-fixed-income-2023-4
Reply
3
pgroove_fan
  |     |   168 posts since 2019
The total offering was just $50 Billion, down from the $60 Billion it has been the last few weeks and $75 B it ran fairly recently.
Reply
2
interested
  |     |   79 posts since 2019
The value of the Ivy Bank index savings account is indexed to the 1month Treasury return (valued on the 15th of prior month) is fizzling out. I started it at about 4.75% and now is around 4.3% and will be even lower beginning May 1. Ivy regular savings account remains at 4.5%.
Reply
4
w00d00w
  |     |   360 posts since 2012
one month Treasury yield continues to fall...any 2 to 6 month TBills maturing late April to June 1 are being purchased in the secondary market at a very small premium
Reply
2


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