Bond

Pull the Plug on T-Bill Purchases

Posted by Sun on June 18, 2007 (5) Comment

I have been watching the movement of 4-week T-bill rates for a while and considering making adjustment of my investment more than a month ago, but didn’t really do I felt was the right thing to do until last night when I finally canceled all the pending purchases.
The latest auction of T-bill gave investors a [...]

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2007 4-Week T-Bill Rate Update

Posted by Sun on May 7, 2007 (4) Comment

The rates of 4-week T-bills tumbled in recent weeks, dropping nearly 50 basis points in a matter of four weeks. The investment rate from last week’s auction is 4.683%, equivalent to a 4.79% APY.

Even when factoring in the NJ state income tax, the equivalent yield is only at 5.11% APY, falling quite far behind [...]

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How to Invest in 4-Week T-Bills: The Complete Process

Posted by Sun on March 15, 2007 (35) Comment

The following questions were left at my recent post on 4-week T-bill rate:
When the 4 week period is over what happens to the money invested? Do you reinvest the money along with the interest earned ? Also what kind of tax document do they provide (1099 etc) and does that show the details for all [...]

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Year-to-Date 4-Week T-Bill Rates and Current Online Savings Rates

Posted by Sun on March 11, 2007 (7) Comment

Since the start of 2007, the rates of 4-week Treasury bill have been on the rise. Last week’s auction set the latest investment rate at 5.247% APR. If this rate is converted to annual yield, the APY is 5.376%. Since interests earned from T-bill investments are exempted from state income taxes, the equivalent yield (EAPY) [...]

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The Big Fat Check is Here and My Spending Plan is

Posted by Sun on March 3, 2007 Comments Off

1. Boost my 4-week T-bill purchases from $12,000 a month to $24,000 a month.
The latest T-bill rate (March 1, 2007) is 5.267% APR, equivalent to a 5.40% APY. Considering that the interests earned from T-bill investment are exempted from state income taxes, the effective annual yield is as high as 5.77%, a rate that [...]

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2007 4-Week T-Bill Rate Update

Posted by Sun on February 4, 2007 Comments Off

As some popular online savings banks recently slashed their rates (GMAC from 5.25% to 5.00%, Citi e-Savings from 5.00% to 4.75%), the rates of 4-week were on the rise, at least in the first month of 2007. 

The rate ended 2006 at 4.742% APR. On January 30th, the rate of 4-week T-bill was 4.972%, which [...]

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2006 4-Week T-Bill Rates: The Complete Picture

Posted by Sun on December 31, 2006 (1) Comment

Here's a complete chart of the 4-week T-bill rates of 2006. Overall, the rates were on the rise throughout the year. It was just above 4.0% when 2006 began, gradually moved up and peaked at 5.263% on November 30th, and ended the year with a 4.742% APR, a 17.6% annual increase in rates.
 
The sharp [...]

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Lastest 4-Week T-Bill Rate at 5.243%, Highest of the Year

Posted by Sun on November 19, 2006 Comments Off

The auction of last week's 4-week T-bill set the rate at the highest level of the year. Even without considering the equivalent taxable yield, the rate of 5.243% APR almost matches what GMAC bank has to offer (5.30% APY with $500 initial deposit). 

At 5.243% APR, the annual percentage yield (APY) is 5.37%. Since interestes [...]

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Update on T-Bill Taxable Equivalent Yield

Posted by Sun on November 8, 2006 (5) Comment

Yesterday, a reader, goldsheet (Thanks!), posted a comment on my T-Bill Taxable Equivalent Yield, saying that the EAPY formula in the post is actually for itemized deduction and he/she also provided a formula for EAPY for standard deduction.
Indeed, the formula I gave is only for the calculation of EAPY if you itemize, which I automatically [...]

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If You’re Coming from Saving Bond Advisor

Posted by Sun on November 7, 2006 Comments Off

I'd like to take this opportunity to welcome you to my diary and hope you find the information in my post "T-Bill Investment Rate: Is it APR or APY? And What Is Your Taxable Equivalent Yield?" useful. I will be very happy if the post, written with my best knowledge, can help you understand some [...]

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