Graybeard
Full time employment: Posting here.
- Joined
- Aug 7, 2018
- Messages
- 603
I have waited 3 weeks for the Fed meeting that took place this week thinking T bill coupons would rise considering a 75 bp rate increase was expected. I didn't want to lock in a "lower" coupon in early July for 3 months, well so much for that theory!
Looking at the 3 month auction the possible coupon is 2.367% and today the 3 month T bill's coupon is 2.41% and this maturity is open now to place an order. Tying up money for 3 months puts the maturity date past the next Fed meeting in September so I looked at the 1 month and 2 month coupons as they will open to buy on 8/2, today their coupons are 2.22% and 2.28% respectively. Tying up money for an extra 30 days for an extra 6 bp doesn't seem like it is worth it. So I'm thinking of buying the 1 month T bill which matures 8/30 and then deciding what to do then.
I have over $100k in my Rollover IRA's settlement fund which has a 7 day SEC yield of 1.60% today. I'm thinking of buying 25 to 50 1 month T bills. Is there a reason the 1 month T bill wouldn't be a good idea? Sure rates can go up or down but I'm not sure if I'm over looking something obvious as I'm still new to buying T bills.
Thank you!
Looking at the 3 month auction the possible coupon is 2.367% and today the 3 month T bill's coupon is 2.41% and this maturity is open now to place an order. Tying up money for 3 months puts the maturity date past the next Fed meeting in September so I looked at the 1 month and 2 month coupons as they will open to buy on 8/2, today their coupons are 2.22% and 2.28% respectively. Tying up money for an extra 30 days for an extra 6 bp doesn't seem like it is worth it. So I'm thinking of buying the 1 month T bill which matures 8/30 and then deciding what to do then.
I have over $100k in my Rollover IRA's settlement fund which has a 7 day SEC yield of 1.60% today. I'm thinking of buying 25 to 50 1 month T bills. Is there a reason the 1 month T bill wouldn't be a good idea? Sure rates can go up or down but I'm not sure if I'm over looking something obvious as I'm still new to buying T bills.
Thank you!