Anyone buying Individual Short Term Treasuries?

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TheTimeLord
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Anyone buying Individual Short Term Treasuries?

Post by TheTimeLord » Thu Jun 14, 2018 8:50 am

Bought some short term Treasuries (6-18 months) anyone else buying individual short term Treasuries?
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dbr
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Re: Anyone buying Individual Short Term Treasuries?

Post by dbr » Thu Jun 14, 2018 9:04 am

I imagine lots of people might hold cash in T-bills. I think you can get about 2% there now for 6 month bills. I don't have any need for that myself. I'm not sure longer terms than a year get you much right now. It is not likely the long term retirement investor needs to bother.

You can look at the Treasury yield curve as it evolves over time to see how flat the yield curve is now: http://stockcharts.com/freecharts/yieldcurve.php

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Sandtrap
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Re: Anyone buying Individual Short Term Treasuries?

Post by Sandtrap » Thu Jun 14, 2018 9:16 am

Considered Short Term Treasuries last month.
Bought Short Term Brokered CD's instead.
j

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dual
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Re: Anyone buying Individual Short Term Treasuries?

Post by dual » Thu Jun 14, 2018 9:22 am

Sandtrap wrote:
Thu Jun 14, 2018 9:16 am
Considered Short Term Treasuries last month.
Bought Short Term Brokered CD's instead.
j
Can you give an example of a 6 month CD at vanguard, Fidelity, Schwab etrade that beats the same term Tbill?

123
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Re: Anyone buying Individual Short Term Treasuries?

Post by 123 » Thu Jun 14, 2018 9:24 am

In taxable accounts we have moved all our fixed income positions to treasuries (3 to 12 month bills). We exited bond funds a year ago and were using shorter brokered CDs. I don't much believe in market timing but when interest rates got as low as they did I didn't see much reason to stick with them when rates started to rise. Call me bad. Our current plan is to use 12 month treasuries since we feel there is a significant chance of getting "burned" if we go longer than 12 months and rates rise significantly. We primarily use Fidelity with treasury auctions and auto rollover.
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Sandtrap
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Re: Anyone buying Individual Short Term Treasuries?

Post by Sandtrap » Thu Jun 14, 2018 9:32 am

Image

DetroitRick
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Re: Anyone buying Individual Short Term Treasuries?

Post by DetroitRick » Thu Jun 14, 2018 9:39 am

Yes. Started doing so in February. Mainly in the 9 month to 1-1/2 year range on the secondary market. I'm laddering to match cash needs. I find it an easy decision right now for my specifics - the relative flatness of the yield curve (as dbr mentions above) combined with modest short-term inflation prospects. And in one case where I use them, I also like the superior liquidity.

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spdoublebass
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Re: Anyone buying Individual Short Term Treasuries?

Post by spdoublebass » Thu Jun 14, 2018 3:13 pm

I actually just set up a Treasury Direct account a few days ago. I read a lot of negative things about it on here, but I wanted to see for myself. So far no problems. I opened the account in a few minutes.

I bought one TBill just to see how everything works.

I plan on buying T bills and notes to pay for an expense I have coming up in a few years. Thought it would be better than just having it in a savings account.

For people with less to invest, I was happy to see the minimum buy for TD was $100.
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Dancer
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Re: Anyone buying Individual Short Term Treasuries?

Post by Dancer » Thu Jun 14, 2018 3:31 pm

I'm planning to buy a TBill soon as a test. Get out of CA taxes ; I don't make enough for munis to make sense.

If all goes swimmingly, will use a bit more in taxable.

William55
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Re: Anyone buying Individual Short Term Treasuries?

Post by William55 » Thu Jun 14, 2018 3:58 pm

Recently took some gains off the table and bought two short term fixed income ETFs SHY and MINT.. mostly MINT. Like the managed duration and yield of MINT

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Re: Anyone buying Individual Short Term Treasuries?

Post by jebmke » Thu Jun 14, 2018 4:09 pm

MINT looks like a completely different risk profile than US treasury securities.
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Re: Anyone buying Individual Short Term Treasuries?

Post by UpperNwGuy » Thu Jun 14, 2018 7:25 pm

No individual short term treasuries for me. I'm continuing to buy Vanguard Total Bond Index Fund and Vanguard Intermediate-Term Tax-Exempt Fund. My time horizon is 20 years, so I stick to intermediate term bonds.
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Re: Anyone buying Individual Short Term Treasuries?

Post by abuss368 » Thu Jun 14, 2018 7:27 pm

We invested in Vanguard's Treasury Funds many years ago. Now we simply invest in Total Bond Index. It does the job.

However, in my opinion there is nothing wrong with investing in Treasury Funds. In fact, David Swensen, Yale University CIO, recommends Treasuires and TIPS only for a bond strategy.
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diy60
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Re: Anyone buying Individual Short Term Treasuries?

Post by diy60 » Thu Jun 14, 2018 7:36 pm

I've been laddering 52 week TBills every month for the last 12 months or so. Treasuries seem to have had a slightly better return lately than CDs for a 12 month duration. I've been buying the TBills at new issue auctions and on the secondary market as well.

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whodidntante
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Re: Anyone buying Individual Short Term Treasuries?

Post by whodidntante » Thu Jun 14, 2018 7:44 pm

Short term treasuries are pretty attractive right now. Though if state taxes are not an issue and you can stand commercial paper credit risk, ICSH will pay more. The SEC yield is 2.42% and the term risk is very low.

carguyny
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Re: Anyone buying Individual Short Term Treasuries?

Post by carguyny » Thu Jun 14, 2018 7:53 pm

I don't hold bond funds, just individual bonds. I'm at about 70 or so CUSIPs, mostly short-term. The 6/5 4 week auction cleared at 1.807%, which is great in a very high tax state like NY. Much better than having it in a bank account.

triyoda
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Re: Anyone buying Individual Short Term Treasuries?

Post by triyoda » Thu Jun 14, 2018 7:55 pm

Yes. Just bought my first 6 month bill today. I am going to do a six month ladder for about 60% of the cash (emergency funds) that I have been allocating to a discover savings account (1.60%). The 6 month bills have better absolute retrun and also state tax exempt (my marginal state rate is 10%), so this seems like the best return I am going to get for cash investment.

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Re: Anyone buying Individual Short Term Treasuries?

Post by livesoft » Thu Jun 14, 2018 8:21 pm

Yes, bough T-bill a few months ago expecting Total Bond Index to drop about a percent of so. That happened and the T-bill matured and I bought back Total Bond Index. Carry on!
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Nate79
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Re: Anyone buying Individual Short Term Treasuries?

Post by Nate79 » Thu Jun 14, 2018 11:42 pm

Yes 3 and 6 month Tbills thru Schwab instead of cash and savings account for emergency funds.

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dual
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Re: Anyone buying Individual Short Term Treasuries?

Post by dual » Thu Jun 14, 2018 11:43 pm

Sandtrap wrote:
Thu Jun 14, 2018 9:32 am
Image
Tbill rates: http://www.treasury.gov/resource-center ... data=yield

Code: Select all

Date	1 mo	3 mo	6 mo	1 yr	2 yr	3 yr	5 yr
6/1/18	1.74	1.92	2.1	2.28	2.47	2.61	2.74
6/4/18	1.77	1.94	2.13	2.3	2.52	2.64	2.78
6/5/18	1.82	1.94	2.13	2.32	2.49	2.62	2.76
6/6/18	1.81	1.95	2.13	2.32	2.52	2.65	2.81
6/7/18	1.78	1.94	2.12	2.31	2.5	2.63	2.77
6/8/18	1.78	1.93	2.12	2.3	2.5	2.63	2.77
6/11/18	1.82	1.94	2.11	2.32	2.52	2.66	2.8
6/12/18	1.81	1.92	2.1	2.31	2.54	2.67	2.81
6/13/18	1.82	1.94	2.09	2.35	2.59	2.71	2.85
6/14/18	1.81	1.94	2.07	2.35	2.59	2.69	2.81
IN a taxable account, if your state has an income tax, the Tbill after tax rate will be higher than the brokered CDs up to one year term. In a tax deferred account it is a push up to one year. One year is as long as I want to go in a rising rate environment so I go with the Tbills as there is no worry about 250K limits and low cost sale if cash needed before maturity.

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