New Treasury Rates Question

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razorbacker
Posts: 92
Joined: Tue Feb 25, 2020 11:04 pm

New Treasury Rates Question

Post by razorbacker »

Ok, I know this is a question too basic to even ask. I feel like I have learned more about the magical voodoo of bonds the past few months than all previous years of investing. (I kind of thing a lot of folks have recently been learning more about bonds as well) Simple question, how are Treasury bond rates determined each week? Are rates set by the Treasury Dept. or market of what customers are willing to pay?
Grt2bOutdoors
Posts: 24760
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: New Treasury Rates Question

Post by Grt2bOutdoors »

razorbacker wrote: Fri May 13, 2022 8:43 pm Ok, I know this is a question too basic to even ask. I feel like I have learned more about the magical voodoo of bonds the past few months than all previous years of investing. (I kind of thing a lot of folks have recently been learning more about bonds as well) Simple question, how are Treasury bond rates determined each week? Are rates set by the Treasury Dept. or market of what customers are willing to pay?
By auction, competitive bids by dealers and institutional investors. Individual investors usually make a non competitive bid and the treasury will award them the high interest rate offered for that particular security.

If you are looking at daily treasury prices, by price discovery buyers agaisnt sellers.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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