Recent t-bill auction results--rates--

Thanks for the update.

We seem to be topping in yields. So I’m beginning to look at longer duration t-bill ladders for my taxable accounts and longer duration brokered CDs for my tax advantaged accounts. For what I’d allocate for income purposes, 2 yr. duration at 5% or so is a decent div. stock replacement in either account (plus the tax benefits in the taxable account). Depending on the economic and future yield outlook, I may even look at some 3-5 yr. issues later on.

Do you hear people talking about the inverted yield curve?? Short term rates are higher than long term now. i didn’t look today but for a couple of months the tbills have been yielding higher than the ten year bond.

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Do you hear people talking about the inverted yield curve?? Short term rates are higher than long term now. i didn’t look today but for a couple of months the tbills have been yielding higher than the ten year bond.

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Yes, that’s surely the case. We’ll see who wins the recession debate.

Hard to say. If the auctions have heavy net demand, that’ll probably keep the shorter yields down where they are now. The recent hike didn’t have much effect. Once my current bills mature, I’ll take a read (or guess) and probably stagger some maturities. I’m hoping for 5% on 3-5 yrs., but we’ll see.

Currently in accumulation mode in my financial journey. I’m sticking with the 17 weeks. I have them staggered where one matures about every month. As the real estate prices continue to fall I want the liquidity in case I find a cash flowing property deal I want to pounce on.

iBonds are currently at 6.89% and the interest is exempt from state taxes. There’s a $10,000/ person limit but also ways to buy more. And you can build up a position over time. If you have a business with a tax ID number you can buy one under the business. Also you and another person can gift each other $10,000 in iBonds per year. I believe there are other options for families like buying for your kids and spouse. I bought a few last year and am about maxed out already for 2023 already.

You’re an options guy. Think of long duration treasuries as a put option with positive theta (the coupon). I put my fiancés entire retirement account in off the run 30 years at like 90 par which have close to 4% YTM and ranged upside of 25-30% when short rates are dropped to 0-.25%.

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I suspect the rates will go up even more this week.

I bought some 4 week t-bills yesterday (3/14 issue date).

I'm small potatoes in dollar amounts to most, so I won't say how much.