Any time I post ‘quiet day’ you can be certain it won’t be that quiet.
Today equities are up over 1% and the yield on the 10 year treasury is back down just under 4%. Why?? Who really knows. I see that the ‘services’ indexes were adjusted higher this morning–not showing moderation in this sector.
The Federal Reserve posted a monetary report to congress stressing the need for more rate hikes–Fed chair Powell will testify to congress next week on this report and of course take questions.
This morning I went ahead and locked down CD’s for $10,000 @ 5.15%–seems reasonable for a year. Plenty of cash in my accounts and so maybe out of boredom I bought these–but we will get better rates ahead–I think.
Got 5.0% on a one year treasury. Pulled the trigger today.
I think it makes sense if you live in a high tax state (like me).
We all know the federal Reserve is serious about raising rates. Think its more than a 50/50 chance of 50 point
I been hoping for a drop in bond prices but nothing in investment grade is budging. Even High yield is holding steady.
As a matter of fact, some that traded show no trades today. So pretty quiet day.
Tim,
Why would you prefer 5.15% 1 year CD v/s a 1 year Treasury with almost same yield?
Besides the obvious as close to risk free as possible (putting aside debt default) treasury also easier to liquidate if needed and also state tax free
You can get 5.25% for 1 year ( 5 year CD callable 03/24 ) and paying monthly for 5.35% APY cusip 121331AW2
I gotta say. I am surprised bond prices are holding where they are. Cool my accounts are still up, but I suppose a part of me wanted a bit more excitement and feel good buying spree. Tho if prices drop, I may not be saying that. paradox. conundrum. guess i should just be content.
Smitty—be careful what you wish for!