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Bought US Treasury 1y

Posted on 10/20/22 at 8:19 pm
Posted by thelawnwranglers
Member since Sep 2007
38816 posts
Posted on 10/20/22 at 8:19 pm
CSB - I know

Did 1y for 4and change %

Wouldn't have tried if not for this board
This post was edited on 10/20/22 at 8:20 pm
Posted by Tigerholic
Member since Sep 2006
2214 posts
Posted on 10/20/22 at 8:51 pm to
What’s the link to buy?
Posted by thelawnwranglers
Member since Sep 2007
38816 posts
Posted on 10/20/22 at 8:57 pm to
I bought in my Charles Schwab retirement account

Could have done Treasury direct if not retirement money
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72916 posts
Posted on 10/20/22 at 8:59 pm to
bought my T bills through one of my retirement accounts also
Posted by bovine1
Walnut Ridge,AR via Tallulah,LA
Member since Dec 2004
1284 posts
Posted on 10/20/22 at 9:11 pm to
I'm buying them too, 4-6 month ones.
Posted by Aubie Spr96
lolwut?
Member since Dec 2009
41186 posts
Posted on 10/21/22 at 9:35 am to
I bought 3 month, 6 month, 1 yr, and 2 yr a couple weeks ago. Also bought some 3 month corp bonds from Amazon and Ingersol Rand.

I've said it before here, there's a generation of investors that are going to have to learn about bonds and net present value of money.
Posted by thundercat_3
Member since May 2016
570 posts
Posted on 10/21/22 at 10:45 am to
quote:

there's a generation of investors that are going to have to learn about bonds and net present value of money.
Glad you said this, can you explain the benefit/best way to buy these?
Posted by thelawnwranglers
Member since Sep 2007
38816 posts
Posted on 10/21/22 at 11:48 am to
How is the yield on corp bonds?
Posted by wiltznucs
Apollo Beach, FL
Member since Sep 2005
8972 posts
Posted on 10/21/22 at 12:25 pm to
I parked some cash in the 3 and 6 month Treasuries this week. 4.1% and 4.4% are solid. Especially since my Bank savings account rate is less than 0.5%. Their CD rate is only 1.5%.

Decided to keep it on the short end as I’m expecting the Fed to raise rates again next month. If that happens rates approaching 5% may be here around the new year. Will give me a chance to reinvest should rates climb.
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72916 posts
Posted on 10/21/22 at 12:49 pm to
quote:

Bank savings account rate is less than 0.5%. Their CD rate is only 1.5%.



better than checking. checking is .01% interest
Posted by Triple Bogey
19th Green
Member since May 2017
5993 posts
Posted on 10/21/22 at 1:02 pm to
I was trying to buy some 6 month treasuries yesterday on TDAmeritrade but couldn't figure out wtf I was looking at. Sad to say it, but I've never bought a bond before.
Posted by slackster
Houston
Member since Mar 2009
85115 posts
Posted on 10/21/22 at 1:40 pm to
quote:

Could have done Treasury direct if not retirement money


I’ve never met a soul who purchases T-bills through treasury direct, but yes, it is possible.
Posted by thelawnwranglers
Member since Sep 2007
38816 posts
Posted on 10/21/22 at 1:59 pm to
quote:

was trying to buy some 6 month treasuries yesterday on TDAmeritrade but couldn't figure out wtf I was looking at. Sad to say it, but I've never bought a bond before.


Pricing is weird but was sold in $1,000 increments.

I think I got $95.63 which means I paid $953.63 for 1 unit of $1,000. It was sold at a discount because stated interest rate is lower than market. So lower priced to yield market rate at maturity. I believe at maturity I get coupon rate (interest) and face value $1,000

Posted by thelawnwranglers
Member since Sep 2007
38816 posts
Posted on 10/21/22 at 2:00 pm to
quote:

I’ve never met a soul who purchases T-bills through treasury direct, but yes, it is possible.


I would be uncomfortable site is weak
Posted by slackster
Houston
Member since Mar 2009
85115 posts
Posted on 10/21/22 at 2:24 pm to
quote:

was trying to buy some 6 month treasuries yesterday on TDAmeritrade but couldn't figure out wtf I was looking at. Sad to say it, but I've never bought a bond before.


T-bills are typically the easiest to understand for that kind of term. You’re buying $1,000 of face value per bond, and you’re paying some lesser amount for that bond. The difference is the money you’ll make at maturity. They don’t actually pay a coupon payment, just the full face value.

Posted by Triple Bogey
19th Green
Member since May 2017
5993 posts
Posted on 10/21/22 at 3:46 pm to
I did the bond wizard on US treasuries less than a year, but when I got to the purchase screen it was saying all kids of different shite and I had no idea what any of it meant.



Posted by Aubie Spr96
lolwut?
Member since Dec 2009
41186 posts
Posted on 10/21/22 at 3:49 pm to
quote:

Glad you said this, can you explain the benefit/best way to buy these?



I bought mine out of my Fidelity account that I use instead of a savings account.

quote:

How is the yield on corp bonds?


Depends on the term and grade. My 6 month Ingersol at 4.5%. My 6 month Amazon are 4%.
Posted by Jag_Warrior
Virginia
Member since May 2015
4126 posts
Posted on 10/21/22 at 4:22 pm to
quote:

Decided to keep it on the short end as I’m expecting the Fed to raise rates again next month. If that happens rates approaching 5% may be here around the new year. Will give me a chance to reinvest should rates climb.


Same thing I’m doing. I don’t see a (rational) scenario where rates collapse over the next 6 months or so.
Posted by Aubie Spr96
lolwut?
Member since Dec 2009
41186 posts
Posted on 10/21/22 at 4:47 pm to
Fiedlity Bond Ladder Tool

For those of us with a Fidelity account.
Posted by TeaParty
Member since May 2022
935 posts
Posted on 10/21/22 at 5:01 pm to
quote:

I did the bond wizard on US treasuries less than a year, but when I got to the purchase screen it was saying all kids of different shite and I had no idea what any of it meant.


I did the same thing with a 1 yr t bill

Min Purchase 5
Principle 4928.60
Accrued Int. 69.53


Total Cost 4998.13

Is my cash account going to be debited 4928.60 or 4998.13
Which the 2nd value puts me paying the int. so I don't believe that is right by any means.

Not much help on you tube or Think or Swim.
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