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0answers
58 views

How does the Federal Reserve decide to increase Treasury rates? [closed]

Lending Lending is pretty clear to me as it is explained in many online articles. To my understanding, the US Federal Reserve will increase the interest rates for it to lend money to major banks when ...
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2answers
84 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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3answers
353 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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1answer
44 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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1answer
91 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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2answers
175 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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2answers
922 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 ...
2
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1answer
60 views

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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2answers
368 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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1answer
83 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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1answer
305 views

How does the government shutdown affect treasury bills?

I'm investing in treasury bills directly through the treasury and was wondering how the government shutdown affects those bills. Will they still be auctioned? Has a government shutdown in the past ...
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0answers
44 views

US treasury bills transfer

Hi I have a question about US treasury bills Currently I am in London looking to buy some - where do these bills get stored when they are purchased? Im guessing its similar to a stock it's just held ...
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1answer
62 views

Are T-Bills “coupon equivalent” rates based in annual terms?

According to treasury.gov, the "coupon equivalent" for a 1 month (4 weeks) T-Bill issued today is 0.99%. I happened to have purchased a 1 month T-Bill today for $99.9246. By my calculation that ...
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1answer
51 views

What causes US Treasury I bond fixed interest to increase? [closed]

I've been reading about Series I Savings Bonds on treasury direct. It seems that the return on an investment is given by the composite rate which is given by the formula: Composite rate = [fixed rate ...
3
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2answers
163 views

Which spot Treasury bond is used to calculate this high-yield spread?

The link below shows the BofA Merrill Lynch US High Yield Option-Adjusted Spread. I am trying to have a better understanding of high-yield bonds before I invest in them. https://fred.stlouisfed.org/...
2
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1answer
3k views

How can I track TreasuryDirect savings bonds with Mint?

I have a pair of Series I Savings Bonds with TreasuryDirect. Is it possible to track their value using Mint? If so, what's the simplest way to do it?
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1answer
347 views

How do short term treasury bills work?

I'm trying to understand what return I'll get on 1 month treasury bills. I want to invest in something that has minimal risk, minimal management, and flexibility to get my money out. I'm looking at ...
1
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1answer
881 views

Why does Yahoo Finance list the 10y T note (TNX) at 1/10 of CBOE and Google Finance?

As of this asking (after close 10 Feb 2016): Google finance gives the 10-year T note (TNX) as 17.05, down 0.24. Yahoo finance gives it as 1.7050, down 0.0240. The CBOE itself gives it as 17.05, down ...
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1answer
67 views

Federal Reserve Notes vs Coins [closed]

More of a two part question. In the current system (Fiat only currency), why is a Federal Reserve Note booked as a liability (on the Fed balance sheet), but a Coin is not booked as a liability by the ...
2
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1answer
437 views

If I cash in a U.S. treasury bond before maturity, do I lose out on the difference in face value and purchase value?

I have a 30-year U.S. treasury bond (series EE) that is about 3 years away from maturity. I'm considering cashing it in. However, the purchase value was half the face value. If I cash it in, would I ...
2
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1answer
79 views

How to interpret the interest rate of treasury notes?

I am new to investing in the US and money terms in English, so forgive me if this is a stupid question. From this table, I can see, for example, that the most recent 2-year treasury note sale had an ...
4
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2answers
2k views

Treasury Direct requires Medallion for verification, how can I get my bank to do it?

I attempted to sign up for an account at Treasury Direct. Apparently they couldn't validate who I was based on the Address, Bank Account Number, Bank Routing Number, Social Security number, AND State ...
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1answer
308 views

Why are U.S. Treasury interest rates are so low vs. other nearly risk-free rates?

I was reading Options,Futures and Other Derivatives by John Hull and I came across the question: Why are US Treasury rates significantly lower than other rates that are close to risk-free? I ...
3
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2answers
191 views

Treasury bills, how do they work?

I am looking at Bills tab on the site: http://www.treasurydirect.gov/instit/annceresult/annceresult.htm There is a 4-week security term with what appears to be a 4-week maturity date, with "high-...
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1answer
489 views

Where to buy good corporate/goverment/treasury bonds? [closed]

I am non american citizen. I read a portion of Benjamin Grahams, "The Intelligent Investor" he suggests that one should always have a portion of ones savings in bonds. Specifically, he mentions SERIES ...
4
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1answer
5k views

How can I cash US treasury check in India?

I have a United States Treasury check. Please let me know how to encash it in India. I tried ICICI bank but they are unable to process it.
3
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1answer
255 views

Pros & cons of Floating Rate Notes (FRNs) offered on TreasuryDirect, vs. Treasury Bills?

I'm specifically looking to make short term investments in Treasury Bills or Floating Rate Notes (FRNs), which are new securities that began to be offered in January 2014. How do each of these ...
5
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3answers
256 views

Why did prices of Treasury securities go up when US lost its AAA credit rating in 2011?

When the credit rating of a fixed-income security is cut, this means the security has higher default risk. What follows is that the price will go down. However, the opposite happened in 2011 to US ...
2
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2answers
3k views

Is the price of a long-term STRIP typically higher than that of a short-term STRIP?

When interest rates and duration are taken into account, how do they affect the prices of STRIPS ? I'm so confused with this question.
6
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2answers
23k views

How does the 10 year U.S. Treasury bond work?

Can someone explain to me how these bonds work? Are they released to the public at a certain price (face value) and interest rate, and the face value is what traded on in the market place, resulting ...
10
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5answers
14k views

Why do 10 year Treasury bond yields affect mortgage interest rates?

Why is it that when the yield on a Treasury bond increases (because people are selling their bonds, I believe), mortgage rates increase as well? Is there any sort of inherent connection between them? ...
2
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1answer
1k views

Where can I find historical United States treasury note volume?

I want to find the historical data for how much the government had to finance each year. How much 10-year note, how much 30-year note and how much 1, 2, 3, 5 year note? I mean annual data. I didn't ...
12
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3answers
374 views

Why did one-year notes pay more than 10-year notes during the 1980's crisis?

Why did one-year notes pay more than 10-year notes during the 1980's crisis? During the early 1980's, one-year T notes paid more than the 10-year T note, which implies that nobody wanted to buy the ...
3
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1answer
102 views

10-Year Treasury Future Quotes

The CBOE lists the current price for a June 2013 10-Year Treasury future as 132'155. The contract specifications state that the price quote is Points ($1,000) and halves of 1/32 of a point. Does ...
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2answers
710 views

Calculating composite rate from fixed rate and inflation rate for I-bonds

For I-bonds: Composite rate = [Fixed rate + (2 x Semiannual inflation rate) + (Fixed rate x Semiannual inflation rate)] I wonder how to understand the above way of calculating the composite rate?...
6
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2answers
1k views

Treasury Bonds, and why has the NYSE 20+ Year Treasury Bond index (AXTWEN) gone up so much in the last year (2011)?

I'm trying to understand the treasury bond market a little more, specifically why the NYSE 20+ Year Treasury Bond index (AXTWEN) has gone up so much in the last year, e.g. here. I've never really ...