Treasury Marketable Securities

1 Reply

Dear fellow investors

We have been researching the various treasury marketable securities with the thought in mind that we may divert equity currently held in low interest CD and money market accounts into a portfolio of marketable treasury securities.  We are comparing the various treasury bills, notes, bonds, FRN's and TIP's and wonder if any other investors have advice they would be willing to share regards to investing in these securities. The pros seem to be many, including low risk, interest income exempt from state and local Tax, high liquidity, short term investment.  Please see link to the treasury direct website below.

https://www.treasurydirect.gov/indiv/products/prod_tbills_glance.htm

All responses are welcome.

Thank you

MIke

I'm not an investment adviser and nowhere qualified to give investment advice.

That said, it's my personal (non-tax CPA) opinion that when 90 day treasuries are yielding more (annualized of course) than 2, 3, 4, and 5 year bank CDs, 90 day treasury ladders become very compelling.  Not only do you have much more liquidity with the ladders, you have less interest rate risk.  Important as rates have jumped substantially in the last 12 months and they don't appear to be slowing down.

Not a fan of Treasury Direct.  You can buy treasury bonds, notes, and bills through most brokerages.  FYI.