Questions tagged [treasury]

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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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17 votes
4 answers
4k views

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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1 answer
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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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0 answers
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Treasury market liquidity derivation

This article discusses T-bill market liquidity/depth: Market depth -- derived from the sizes of the top three bids and offers on the BrokerTec trading system between 8:30 a.m. and 10:30 a.m. in New ...
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0 votes
1 answer
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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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2 answers
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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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  • 165
1 vote
1 answer
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Series I savings bonds as gifts - how do limits & complications work?

Let's say Alice $10k in (electronic) Series I savings bonds for Bob as a gift. There's a limit of $10k in bond purchases per recipient, so this introduces potential complications. Consider the ...
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1 vote
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Why do we have *daily* series of T-bill yields?

I understand that each week the US Treasury issues new T-bills at different maturities (1-month, 3-months, 1-year, etc). As far as I understand, this issuance happens every Tuesday. After the auction, ...
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1 answer
56 views

Are US treasuries volatile and liquid enough for trading short term investment?

If I buy one bond (or bill, note) for 100.0 ($1000), is it common for its market price to go for 104.0 ($1040) within few days, so I sell it and make profit of $40 (which is more than its yield) ?
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  • 837
1 vote
1 answer
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Would I lose principal if I bought a 2% 1-Year Bill for $103.0?

Would I lose principal if I bought a 2% 1-Year US Bill for $103.0 (1000 + 20 - 1030 = -10) ?
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  • 837
1 vote
1 answer
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Can I place limit orders (like limit, stoplimit, trailstop..) in bonds (treasury bonds, municipal and other types of bonds)?

Can I place sell limit orders (like limit, stoplimit, trailstop..) in US bonds (treasury bonds, municipal and other types of bonds)? or it is only market orders?
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1 answer
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Why would anyone buy an old treasury while it is regularly auctioned during the year?

Why would anyone buy an old treasury while the same treasury (for example 5 year note, two years note) is regularly auctioned during the year? I mean if the yield rise why to buy an older note ...
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  • 837
2 votes
1 answer
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Are there market makers in bonds market?

When I order to mkt buy/sell stocks in US primary markets it excuted in seconds. In bonds markets, especialy in US treasuries, if I order to sell my bond or to buy an old bond, could my mkt order last ...
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  • 837
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1 answer
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Does the retail investors buy treasuries for trading as main purpose?

The yields for treasuries are very low, it is not logic to hold a treasury for 30 years to get two percent every year, I'm a beginner so I wonder if buy bonds/notes and waiting the yield to fall and ...
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-2 votes
1 answer
109 views

If I bought one treasury bond for 100.0 ($1000), then its market price become 110.0, does my profit be $100?

If I bought one treasury bond for 100.0 ($1000), then its market price become 110.0, if I sold it, does my profit will be $100? and does all other bonds' profits (municipal, corporate, international.....
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  • 837
2 votes
2 answers
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When the 5-Year Treasury Note's yield is up 10%, Which note exactly do they refer to?

The 5-year Treasury notes, for example, are issued multiple times during the year, everyone have its cusip number, when they say this note yield is up by 10%. Do they refer to the most recently ...
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  • 837
0 votes
1 answer
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How is the first price of us treasury futures decided?

How is the first price of u.s treasury futures decided? Does it depend on the last price of the previous future contract ?
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  • 837
-1 votes
1 answer
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How often does the treasury department issue bonds and at what prices?

How often does the u.s treasury department issue bonds and at what prices? Does it issue bonds throughout the year with the same annual yield regardless of current bond prices in the bond market, as ...
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  • 837
9 votes
1 answer
2k views

Do x-year treasuries become y-year treasuries (x-y) years later?

My understanding is that treasuries can be bought and sold (which is what causes their changing interest rate because of their changing price). Since they aren't static/locked assets, does that mean ...
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1 vote
0 answers
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Question about the premium from selling bonds

Suppose I bought a $1000 ten-year treasury note (2031) with 4% yield. After one year, the yield decreased to 1%. If I sell it, how much premium will I get? Will I get (3% * 1000)? If the calculation ...
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1 answer
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How can I benefit as an individual investor in bonds, from increasing of bond yield?

I'm a beginner, What do I benefit as an individual investor in bonds, from bond yields increasing ? If I bought a 10 years treasury bond at the beginning of this year with a yield of 1 and then it ...
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  • 837
1 vote
1 answer
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How can I find the price (not just the yield) of a treasury bond? [closed]

Sorry if this is a dumb question, but whenever I want to look up the US treasury bond, I can only find the historical chart for its yield. But how could I find its historical price ($1183.28 as in the ...
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1 vote
1 answer
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TNote 10yr Futures YTM vs market yield?

I understand how to calculate the yield on a 10 yr TNote based on face, price & coupon. I don’t understand why the yield (and price) on a futures contract about to expire is so different than the ...
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1 vote
1 answer
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Why are long-dated US treasury bond yields so low?

I know that the US Fed sets only the federal funds rate, which impacts only the shorter term treasury bonds. The longer term bond yields (ie 20, 30 years) are impacted by demand for those bonds. The ...
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0 votes
0 answers
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US Treasury Bill will Mature on Thurs, Oct 22 - how to re-invest part of if before Maturity

I purchased 13-week Bill on US treasury. It will mature Oct 22. But I want to re-invest part of it today, Oct 18. When I log into my Treasury Direct account, there is option to edit my security, i.e. ...
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1 vote
0 answers
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What drives long duration US Treasury Bond ETF prices?

I am looking at TLT, for example, a long duration (with average maturity around 25 years) bond ETF. I noticed that the fed funds rate (or the "interest rate" from federal reserve) has been ...
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1 vote
3 answers
187 views

Why are bond interest rates set at the interest rate set by the Fed?

I have a question about bonds: why do corporations, municipalities, and the treasury set bond interest rates at the current U.S Federal Reserve interest rate? Also, how does the Fed set interest rates?...
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0 votes
1 answer
14k views

How do I cash my stimulus check if I have lost my ID and have no bank account?

I recently just moved to a new area where I know nobody, and I have no bank account set up over here yet. I have no currently valid ID: I only have a photocopy of my old expired state ID and a ...
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1 vote
1 answer
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Advantages of target-maturity treasury bond ETFs vs. buying treasury bonds outright?

Consider a target-maturity bond ETF that holds only treasury bonds: iShares iBonds Dec 2029 Term Treasury ETF (NASDAQ: IBTJ). It has an expense ratio of 0.07% on already-low treasury bond yields. What ...
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1 answer
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Will the Feds pumping 500 billions affect Treasury Bond ETFs?

I was wondering about the question above. I was told that the feds pump the market by buying stocks and bonds which theoretically means that they're going to be investing in bond ETFs. Is my theory ...
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4 votes
1 answer
512 views

What does TMUBMUSD10Y stand for? (U.S. 10 Year Treasury Note)

MarketWatch, WSJ, and Barrons all list the U.S. 10 Year Treasury Note using the symbol TMUBMUSD10Y. What type of ticker/symbol is this? What does TMUBMUSD10Y stand for?
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0 votes
1 answer
96 views

Why do bond & treasury yields drop as more people invest in them?

I thought bond and treasury yields were supposed to be stable till maturity date. Yet we often see reports like this: Market upheaval intensified Friday as stocks and oil prices tumbled, while ...
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0 votes
1 answer
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10 year treasury constant maturity rate explained

The 10-year treasury constant maturity rate over 2019 fell from a Max of 2.75 to a Min of 1.50 with an average of 2.15. I want to check whether my understanding of what the figures and the 10-year ...
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  • 109
2 votes
2 answers
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How well do Treasury bond Futures correlate to their hypothetical underlying bond?

How well do Treasury bond Futures correlate to their hypothetical underlying bond? If the price of the future is most tightly related to the current CTD, whose maturity varies widely, how can the ...
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1 vote
1 answer
129 views

Why have treasury prices risen despite increasing interest rates since the Great Recession?

ETFs that track treasuries have risen despite the fact that the global economy has stabilized since 2008 and interest rates have risen (from near 0 to ~1.5%) My (very simplistic) understanding of ...
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4 votes
4 answers
783 views

If Turkey doesn't go bankrupt, is there any chance they won't pay bonds profits?

Suppose I buy 5000$ worth of Turkish treasury bonds today and the yearly interest rate for 1Y bonds is roughly 25%. Assuming Turkey doesn't go bankrupt in the next year, is there any chance I won't ...
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1 vote
1 answer
207 views

What kind of interest rate is used on treasury bills?

Let me use an example. If we say the yield to maturity of 1 month treasury bill is 2.414% now, what exactly does it mean? In actuarial notations, this number can mean effective interest rate (APY), ...
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2 votes
1 answer
76 views

Bond income calculation question

I thought I got my Bond income right, but my brokerage company's calculator got me totally confused. So here is the problem: I bought a note (US treasury) yesterday: cusip: 912828TN0 (secondary market)...
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6 votes
2 answers
443 views

Is there a catch in investing in treasuries close to maturity date?

Is there a catch to invest to treasuries close to maturity date? I don't want to lock the money for a long time, b/c the interest rate probably will go up. But I am concern that it's not that simple. ...
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  • 111
2 votes
1 answer
68 views

Treasury Expected Yield vs. Reality Difference

I looked at the US treasury website https://www.treasurydirect.gov/instit/annceresult/annceresult.htm and the usual percentage of interest one should get is around 2.4%. So, if I bought a 4-week ...
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1 vote
2 answers
63 views

How does the price of a long term treasury bond effect the value of your investment?

The most important thing to point out about bonds is their interest rate and face value fluctuate like a see-saw, when interest rates are high the face value is lower, when the face value is high the ...
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1 vote
2 answers
196 views

Are there any advantages of long term US treasury ETF's / funds?

I'm debating whether to include any long term US treasury bond ETF in my portfolio. Are there any reasons I would include it rather than go for other types such as intermediate term bond ETFs and US ...
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1 vote
3 answers
441 views

Comparison of Mortgage Rate vs 10 Year Treasury Rate

One of the typical reasons mentioned to not pre-pay a mortgage is that the interest is tax deductible and therefore the effective rate on the mortgage is much lower. However, this argument doesn't ...
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1 vote
1 answer
123 views

Meaning of 10-year treasury note price change

At this moment, WSJ quotes 10-year T-note as below: Price: $100 3/32 Price change: -2/32 (-0.08%) Question 1: Where does the -0.08% change come from? To me, it seems the old price is 100 5/32. ...
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5 votes
1 answer
125 views

Which particular 10-year note does the daily 10-year treasury note yield refer to?

Question might be a bit obscure. The yield of the 10-year treasury note is reported daily on TV and in the papers. Since there are notes with different maturities in circulation, also more importantly,...
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2 votes
2 answers
219 views

Bond yields vs interest

At least from the US Treasury, why is there a yield AND interest rate when auctioning notes? https://treasurydirect.gov/indiv/research/indepth/tnotes/res_tnote_rates.htm I'm under the impression ...
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  • 123
1 vote
2 answers
3k views

Can you calculate 10-year Treasury Note yield from price or vice versa?

I grabbed this screenshot from CNBC this morning: Are the price ($98.0469) and yield (2.981%) mathematically related? Investopedia says "A 10-year Treasury note pays interest at a fixed rate once ...
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  • 14.7k
2 votes
1 answer
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How bidders determine price for T-bills?

Let's take for example 4 week T-bill issued today, 3/1/2018 (https://www.treasurydirect.gov/instit/annceresult/press/preanre/2018/R_20180227_1.pdf). Price of t-bill is determined on auction by ...
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  • 21
5 votes
2 answers
1k views

When are short-term US Treasury funds (ETF or mutual) a good investment?

I want to understand the rationale behind buying into a short-term Treasury ETF (or mutual fund). In particular, I want to understand how it compares to buying short-term Treasury bonds/bills directly ...
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0 votes
1 answer
142 views

10-year bond yields' effects on the stock market

In layman's terms, why does the market struggle when 10-year bond yields rise? The DOW dropped 177 points today and this was apparently the key reason.
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