Checking T-bill yield

[chang]

So I bought the latest 6M T-bill CUSIP 912796ZQ5. Anyone know how to check the final, locked-in yield?

[fishingrod]

www.fool.com/knowledge-center/how-to-calculate-the-percentage-return-of-a-treasu.aspx

[chang]

Now I see the purchase price was $97.70. So the annual yield is exactly 4.600%.

[chang]

Dec 19, 2022 18:35:36 GMT fishingrod said:

www.fool.com/knowledge-center/how-to-calculate-the-percentage-return-of-a-treasu.aspx

The link doesn’t work, but I got it, now that the order has settled and I can see my purchase price.

[fishingrod]

The first calculation involves subtracting the T-bill's price from 100 and dividing this amount by the price. This figure tells you the T-bill's yield during the maturity period. Multiply this number by 100 to convert to a percentage.
Next, multiply the yield you just calculated by 365 and then divide by the number of days in the maturity period that you determined earlier. This will give you the T-bill's annualized investment return.

I come up with 4.71%, Of course I trust your math better than mine!!

www.treasurydirect.gov/auctions/auction-query/?cusip=912796ZQ5

[anitya]

chang,

At Fido, the final order screen before you hit Submit tells you the YTM, always pay attention to that to make sure you are happy with the yield you are buying, which is also your last opportunity to remedy against any fat finger entries so far. Sometimes prices change after you start a buy order and the YTM could change from the quote page to the order submission.

[acksurf]

A bit better than my 3 month TBill at 4.3. I have some 4 month CDs at 4.5. Due to my large "cash" position my portfolio yield is over 4. I have to admit that seems high - I need to verify that! Increasing rates make a huge difference in monthly income.

[chang]

fishingrod: It’s a 6M note, so I just did 2.30 x 2 = 4.60.

[chang]

acksurf: yields may keep rising, but the spread over MMs seemed large enough that I decided to pull the trigger this week. I could have laddered them too, but decided, nah, just put 2/3 of my cash in a 4.6% 6M T-bill, and 1/3 in FNSOX, which will probably end up yielding about the same, and is completely liquid.

[Deleted]

finance.icalculator.info/treasury-bills.html

[acksurf]

Dec 19, 2022 20:39:49 GMT chang said:

acksurf : yields may keep rising, but the spread over MMs seemed large enough that I decided to pull the trigger this week. I could have laddered them too, but decided, nah, just put 2/3 of my cash in a 4.6% 6M T-bill, and 1/3 in FNSOX, which will probably end up yielding about the same, and is completely liquid.

Yeah probably a lot smarter than my piece meal of buying short CDs and TBills and rolling - while having significant amount in FZDXX.  It's a bit torturous because the CD settlement takes place a while after you place the order and then new a batch come out with higher rates before the transaction takes place.