Estimated Interest Rate G Gund July

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Estimated Interest Rate G Gund July

Postby antiqueman » Mon Jun 24, 2013 12:08 pm

Any experts on the G Fund out there? What is consensus on new G Fund rate starting July given backup in yields?
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Re: Estimated Interest Rate G Gund July

Postby Ketawa » Mon Jun 24, 2013 12:19 pm

It's typically about 80% of the 10-year Treasury rate. I don't know if it's based on a snapshot of 1 day at the end of the previous month, or the entire month, but I think it's just 1 day since it spiked up a lot for June and yields only rose at the end of May.

My guess would be 2.125%, maybe 2.00%.
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Re: Estimated Interest Rate G Gund July

Postby Groundhog » Mon Jul 01, 2013 12:14 pm

Ketawa wrote:It's typically about 80% of the 10-year Treasury rate. I don't know if it's based on a snapshot of 1 day at the end of the previous month, or the entire month, but I think it's just 1 day since it spiked up a lot for June and yields only rose at the end of May.

My guess would be 2.125%, maybe 2.00%.


Good guess! The July rate is 2.125%, highest since Aug 2011 (2.25%).
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Re: Estimated Interest Rate G Gund July

Postby Mingus » Mon Jul 01, 2013 2:10 pm

Groundhog wrote:
Good guess! The July rate is 2.125%, highest since Aug 2011 (2.25%).


For the month of July alone??

If someone had 100K in the G fund, it would be paying 2,125 dollars in interest just for July?
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Re: Estimated Interest Rate G Gund July

Postby Ketawa » Mon Jul 01, 2013 2:20 pm

2.125% is the annual rate, not monthly. $100k would gain about $175 in interest.
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Re: Estimated Interest Rate G Gund July

Postby Default User BR » Mon Jul 01, 2013 8:21 pm

Mingus wrote:
Groundhog wrote:Good guess! The July rate is 2.125%, highest since Aug 2011 (2.25%).

For the month of July alone??

If that were the case, then it really would be the only fund you'd need. As noted, G gets a new yearly rate calculated at the start of each month based on the weighted averages of the yields of Treasuries of duration longer than 4 years. Those have ticked up significantly the past couple of months.


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Re: Estimated Interest Rate G Gund July

Postby Mingus » Tue Jul 02, 2013 1:39 am

Default User BR wrote:
Mingus wrote:
Groundhog wrote:Good guess! The July rate is 2.125%, highest since Aug 2011 (2.25%).

For the month of July alone??

If that were the case, then it really would be the only fund you'd need. As noted, G gets a new yearly rate calculated at the start of each month based on the weighted averages of the yields of Treasuries of duration longer than 4 years. Those have ticked up significantly the past couple of months.


Brian


Yeah.. I figured that out about two seconds after I typed it. Would be pretty nice though.
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