Questions tagged [treasury]
The treasury tag has no usage guidance.
119
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Why MBS has lower YTM than treasury bonds?
I just checked, VMBS (Vanguard MBS) has yield of 3.73%, but VGLT (Vanguard government long term bond) has yield of 5.08%. I thought MBS is riskier and would require higher YTM by the market.
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Are there any benefits to purchasing T-bills directly from TreasuryDirect?
I have been purchasing T-bills from TreasuryDirect, but I recently realized that I can also purchase new issue T-bills from Fidelity. The UX is better and when the money is between bond auctions, it ...
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Tbill Rollover Interest
I am buying 52 week t-bills with one rollover through Treasury Direct. Being OID interest based, when I reinvest, will I be investing the full maturity t-bill value in my reinvested t-bill or will I ...
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How do I calculate the interest rate on my Treasury bill given an evaluated price?
Ex: I'm looking at the 3 month (13-week) Treasury bill here, maturing 11/16/2023. The evaluated price is 98.617417.
So is the interest rate:
(100 - 98.617417)/98.617417 * (365/(13 * 7)) * 100 = 5....
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How can the purchase cost of a treasury bill be more than its face value?
I'm considering (non-competitively) purchasing a 52-week Treasury bill through Treasury Direct. As I understand, the purchase price is reduced by the discount rate and therefore is always less than ...
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Do I have to wait until a Treasury Bill auction date to buy a 52-week non-competitive bill, and will reinvesting give me the same rate a year later?
I am considering purchasing through TreasuryDirect, a 52-week Treasury bill which is scheduled for auction Aug. 8th (2023). When can I actually submit my purchase? Should I wait until the latest in ...
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US Treasuries, explanation of numbers listed in IBKR
I've been recently reading about treasuries and trying to understand how they work. In particular, within IBKR I can search for US treasuries and get the numbers listed in the screenshot.
What I've ...
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What does the Bloomberg US Treasury Long Term TR index measure?
I have purchased shares of a bond ETF, ticker symbol: SPTL (SPDR Portfolio Long-Term Treasury ETF). The prospectus states: "the fund's goal is to track the total return of an index that measures ...
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Is it worth it to diversify the "risk-free" portion of a portfolio across multiple assets?
I am looking into the constructing of my own sort of "structured product" and have been thinking about the risk profiles of the "risk-free" portion of products like this.
Generally,...
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What does the EE stand for in EE bonds?
I wonder what the letters "EE" represent in "EE bonds", i.e. whether it's an acronym and if so, what the full form of the EE acronym? I searched quite a bit and couldn't find the ...
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Why aren't Treasury bill auction reopenings marked as reopenings on the Treasury Auction Schedule?
Let's consider on the 13-week bill whose auction date is Monday, March 13, 2023 on Treasury Tentative Auction Schedule. It's not marked as a reopening on the Treasury Tentative Auction Schedule (no R ...
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What part of the auction process for U.S. Treasuries makes it impossible to enroll in the auto-rollover feature after the initial order entry?
When trying to activate auto-rollover for an already purchased Treasury security on Schwab, I get the message:
This security is ineligible for auto-rollover. Due to the nature of the auction process ...
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If US Treasuries at yielding 4-5% right now, why can't I find an ETF that yields that amount?
If US Treasuries at yielding 4-5% right now, why can't I find a 1 month US Bond ETF or 6 month US Bond ETF that yields 4-5%? The best I can find is SGOV but it only yields 2%.
Picture of US yields on ...
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What are the pros and cons, if any, of purchasing Treasury securities at a reopened auction (vs. a new, non-reopened auction)?
I read on treasurydirect.gov:
When we hold a reopening auction, we are selling additional amounts of a previously issued security.
This is reflected in the Tentative-Auction-Schedule.pdf.
What are ...
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Is it financially preferable to purchase Treasury bonds on the primary market or on the secondary market? [duplicate]
Assume a retail investor who:
can purchase Treasury bonds on the secondary market through their broker without any fees or markups (e.g., via Charles Schwab).
can only submit non-competitive bids ...
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Where can I find the indicative yield of soon-to-be-issued Treasury bonds on Charles Schwab?
In Vanguard, one may see the indicative yield of soon-to-be-issued Treasury bonds on https://personal.vanguard.com/us/FixedIncomeTrading:
Where can I find the indicative yield for soon-to-be-issued ...
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Why does buying Treasury bonds on the secondary market make it easier to sell Treasury bonds at a later date?
I read:
Buying on the secondary market also makes it easier to sell Treasury bonds at a later date.
Why does buying Treasury bonds on the secondary market make it easier to sell Treasury bonds at a ...
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Why wouldn't a broker let a retail investor choose the order type when purchasing Treasury bills via auctions?
When purchasing US Treasury bills via auctions with Charles Schwab, one cannot choose the order type: it has to be a market order, as shown below.
As a result, one receives the following warning:
...
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How shall one take into account the accrued interest when purchasing a bond on the secondary market?
For example, I'm looking at the following US Treasury bonds ordered by decreasing yield to maturity (YTM) on Charles Schwab:
If I simply want to maximize the returns, assuming no default risk, should ...
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What accounts for the difference in yield to maturity (YTM) between brokered CDs and US Treasuries?
Looking at the Charles Schwab table below dated 2023-02-24 on the yield to maturity (YTM) for different brokered CDs and bonds, I see that for when the maturity is 1 year or higher, brokered CDs have ...
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How do I buy US Treasury bills?
How does one usually buy Treasury Bills? I see there is both the Treasury website and secondary markets. Apparently, the rates are different in each? I‘m a total newbie here, so could someone walk me ...
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How to report losses on Treasury Bill sales?
I have an account at Fidelity. Last year I sold some Treasury Bills before they matured. Some of the sales were gains and others were losses.
When I got my Fidelity tax package, it showed the gains as ...
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Financing kids' college with bonds
The rates of treasuries went up in the US. I would like to save for college for my children so I know that in 10 years when they need to pay for college I will have the funds. Could I buy 10 year ...
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TreasuryDirect.Gov Tax Withholding
Anyone know where in treasurydirect.gov website we setup tax withholding for interest accrued owning T-Bills and Notes?
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How do I determine Interest Rate of 4-Week Treasury Bill
I purchased 4 week treasury bill for $2220
Treasury will take out $2212.4545 from my Bank account
Treasury says Investment rate = 4.446% and High rate = 4.370%
But I calculate interest rate as 4.43361%...
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The interest rate of a (U.S. Treasury) "Floating Rate Note" (FRN)
I am having trouble to reproduce the calculation of the interest rate of a (U.S. Treasury) "Floating Rate Note" (FRN). Can you help me to find my error?
The calculation is described here: ...
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Treasury Yields -- Quoted on an Investment Basis vs. Discount Basis
I'm looking at the St. Louis Fed website's historical data for the 1-year treasury. There are two different but similar pages. One is titled:
1-Year Treasury Bill Secondary Market Rate, Discount Basis
...
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Calculation for current value of Ibond in TreasuryDirect
I have purchased I bond from TreasuryDirect in the amount of $10K in 8/2021 and 1/2022, totaling $20K. Currently, TreasuryDirect shows the interest rate of 9.62% for my 8/2021 purchase and 6.48% for ...
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Invest in treasury bonds or pay off loan?
I have about $5000 coming in from a stock sale (ESPP). My plan with it was to invest in treasury bonds (I), since the rate is really good right now (~6.69%). It changes every 6 months (https://www....
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Why is there a discrepancy between current inflation rate and I bond rate in the US?
According to https://www.rateinflation.com/inflation-rate/usa-inflation-rate/, the November 2022 inflation rate is 7.11%, but the I Bond rate according to Treasury Direct is 6.89% (from November 2022 ...
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T-bills yield is the lower bound for the return?
When I look at the US treasury rates I see a number say 4%. That means if I buy 12m note today I will get 4% interest in 12M. This will be my return. What if the rates went down and as a result the ...
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Why did SHY ETF only drop 5% YTD but IEF dropped 15% when yield curve is inverted
I don't understand the pricing of these two ETFs. I understand the effect of duration risk, thus, making IEF more volatile but this explanation would contradict with the inverting yield curve.
In ...
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safe investment for maintaining purchasing power
I have $100,000. I am going to need the money over the next year.
I want to protect its purchasing power relative to inflation and also have some reasonable low risk return.
What would be a good ...
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Why would someone buy bonds with yields comparable to US Treasury bonds?
Fidelity is showing the following chart for current bond yield rates:
For 1-year bonds, US treasure currently offers a 1-year yield of 4.62% which is above or comparable to:
Corporate AAA/AA bonds: ...
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How to determine what would be considered a good rate for 4-52 week Treasury bills?
According to the information provided by treasurydirect.gov, currently the rates for any Treasury bill ranging from 4-52 weeks are all above 4% (expressed yearly).
Looking at the 10 year/3month ...
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Possible discrepancy between TreasuryDirect.gov Treasury Bill Investment Rate and Self-Calculated Interest Rate
I bought a 17 week treasury bill ending in Z93 as shown in the screenshot above.
I placed 20,000 and after the discount rate, I paid 19707.13 for the treasury bill.
According to the screenshot, the ...
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Do I have to report my T-Bills on taxes if they haven't yet been matured?
Do I have to report on taxes for 2022 year my 4 week T-bill if I buy them on Dec 6, 2022 (Maturity date Jan 3, 2023)?
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TreasuryDirect.gov not showing monthly interest gained on an I bond
I bought an I bond on treasurydirect.gov and it was filled on 10/1/2022 (more than 1 month ago at the time of writing). My understanding is that I bonds accrue interest monthly but when I login now it ...
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Yield curve to price bonds
I am having a hard time finding books/materials that would teach yield curve pricing using real-world problems/examples
I would like to understand if can I use the below treasury yield data (I believe ...
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1 year CD or 1 year Treasury pros and cons
I was looking at treasury rate and CD rates . And It looks like Treasury rate is higher than CD . And with my own experience it is easy to buy either CD or Treasury. So My question why people buy CD ...
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How can I claim tax credit for a bond that has been frozen?
I own a USD-denominated Venezuelan bond. It expired in 2020, but the US government froze payment so I did not receive my capital or the final coupon. The bond did not default. How can I claim tax ...
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How is implied volatility on future treasuries used to expect Forex volatility?
I was listening to some traders talk amongst themselves. One emphasized the importance treasury implied Vol as a useful indicator for forex vol/trading.
I don't totally see the connection. I have a ...
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Does a Treasury Note Pay Interest on the Maturity Date?
I'm looking for a clear example of Treasury Note interest payments. I've read this on the TreasuryDirect website:
Treasury notes pay interest on a semi-annual basis.
When a note matures, the ...
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How do I reflect discount on a Treasury Note
I bought Treasury Note for long duration, for $1000 par
I had huge discount, i.e i only had to pay $800
How do I reflect this $200 discount in tax return?
Will I be sent an INT form?
Or do I ...
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How do I compute the adjusted debt-to-equity ratio for a Treasury Stock?
I want to compute the adjusted debt-to-equity ratio. The formula is simple: ADE ratio = Total Liabilities divided by Total Equity and Treasury Stock. When I look for Treasury Stock for MSFT (https://...
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Market risk for TIPs vs. I Bonds
Treasury Direct has a good comparison between TIPs and I Bonds:
https://www.treasurydirect.gov/indiv/products/prod_tipsvsibonds.htm
However, I want to make sure I understand when you can lose ...
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How Is There A Yield Curve For Treasuries?
Why would anyone buy a 1 yr T-Bill with a return of 1.25% when you get double that on a 30-year T-Bond? Where is the risk and/or liquidity premium coming from?
There's a highly liquid, secondary ...
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Treasury shorts, liquity and yields
This article describes the relationship between treasuries shorts and treasuries market liqudity and yields:
With short positions anticipating higher yields elevated and
continuing to grow, liquidity ...
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What does it mean that UST10 have risen from 1.2 to greater than 1.7 over the last half year?
I'm a newbe in bonds market, but I'd like to ask what does it indicate that UST10 have risen from 1.2 to greater than 1.7 over the last half year?
Does it mean that the bond market foresees high ...
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Why do raising short-term yields indicate that the economy is about to enter a recession?
Below is the excerpt from the article Term Structure Of Interest Rates
Downward sloping — short-term yields are higher than long-term yields. Dubbed as an "inverted" yield curve and ...
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