T-bill rates. They're all about 5.35-ish percent now.

[mahatmakanejeeves]

Last edited Tue Aug 8, 2023, 12:50 PM - Edit history (1)

4-week, 8-week, 17-week, whatever. They're getting up there.

You can check them without having an account.

https://www.treasurydirect.gov/auctions/announcements-data-results/

Full disclosure: I kicked in some money yesterday. I placed a bid for some 17-week bills and another for 4-week bills. It looks like both those auctions took place today.

So if the government does something you don't like, you have me to blame for financing it.

[SWBTATTReg]

1. Thanks! I've been watching, to see if I want to put some $ aside in a CD at my Credit Union.

Still watching/monitoring.

[mahatmakanejeeves]

4. T-bill rates are at about CD rates.

There are no state taxes on T-bill interest, and you don't have to give up your money for six months, a year, two years, whatever.

[NoMoreRepugs]

2. The US10Y @4%+ is quite intriguing.

Rates go back to their 'norm' of 2-2.25 that's almost a double in price - just sayin'.

[lastlib]

3. It's a "double" in *Yield*--

(not price)

just being my nerdy technical self.....

[NoMoreRepugs]

7. Hence intriguing to say the least. Worst case 4% guaranteed.

[h2ebits]

5. Please explain how to do the bidding?

I've never used the bidding process. I don't understand what the "high rate" indicates vs. the Investment rate. If you wish to bid, how will you know the interest rate that you will be paid?

[mahatmakanejeeves]

6. You don't make an exact bid. You take whatever comes your way.

Once you've set up an account and you've logged in, you go to the "I'd like to buy something" page. You tell them how much you want to buy; $1,000, $5,000, $10,000, whatever; and for what duration. You designate a source of your funds, which could be from existing money at Treasury Direct or a bank or credit union. They ask, "is this right?" and you say "yes." That's it.

T-bills will sell for less than the face amount. When they mature, that's when you get back your $1,000, $5,000, $10,000, or whatever. The difference between what you paid and what you get back, divided by the time you've had your money tied up, is how you figure the interest rate.

You aren't entering a competitive bid. Bigger players than you will set that. You just go along for the ride.

Oh, what the "high rate" indicates vs. the Investment rate. I'm drawing a blank right now. Someone here will know that one.

Well, let's see what Google says.

https://www.google.com/search?q=high+rate+indicates+vs.+the+investment+rate+of+treasury+bills

That brings up this:

Okay, it's 360 days vs. 365 days.

[h2ebits]

8. Thanks so much for your help!

You have provided much needed help while I try to figure out what to do with cash right now.

Also, excellent you tube video explanation.