|
|
Post by yogibearbull on Mar 19, 2024 14:39:24 GMT
|
|
|
|
Post by anitya on Mar 19, 2024 20:32:45 GMT
yogibearbull , which one would you vote for a buy now: 2 yr Treasuries, 1 yr Treasuries, or 3 mo Treasuries (USFR)? Money will come out of VUSXX (Vanguard Treas MM) currently with a 7 day yield of 5.30% and had US obligations interest only at 80% last year. With a state tax rate of 10%, the effective 7 day yield for me is less than 5.2%. Three mo Treasuries are currently yielding at 5.4%. That is 20 basis points higher. Seems like buying 3 mo Treasuries (put on an auto roll) is a easier choice vs VUSXX, especially given the uncertainty of the percentage of US obligations interest Vanguard will spit out in 2024. Does Vanguard allow auto roll of maturing Treasuries bought in auction? VUSXX stats: ER 0.09% Number of holdings 26 Average maturity 43.0 days Weighted average life 49.0 days Fund total net assets as of 02/29/2024 $69.9 B P.S.: In 2024, Vanguard sweep fund (VMFXX) earned 49.34% from US obligations. That fell below the 50% threshold to qualify for my state tax exemption.
|
|
|
|
Post by yogibearbull on Mar 19, 2024 21:14:29 GMT
|
|
|
|
Post by anitya on Mar 22, 2024 23:25:42 GMT
yogibearbull , I did not realize today was ex date for USFR. I was surprised by the amount of liquidity for USFR in after hours on a Friday. Bought after hours. Funding after hour purchases of what is currently T+2 may become tricky in May when we go to T+1 if sufficient funds are not in the sweep account. Is Schwab going to charge us margin if you place the sell of MM during after hours to satisfy purchases made the same day after hours? Is Fido going to pull money from MM the next day without margin interest? What are Vanguard policies on this? Any thoughts? There are so many trades that go to three decimals. It is annoying that brokerages do not allow us retail to go to three decimals and so we end up paying a penny more and getting a penny less. That is two pennies lost!
|
|
|
|
Post by anitya on Mar 26, 2024 6:27:40 GMT
yogibearbull , I did not realize VUSXX is a T+1 MM fund at Vanguard. I thought Vanguard's own MM funds would be same day settlement at Vanguard. My sell order executed today but it will settle tomorrow. I guess only the sweep MM fund is T+0.
|
|
