Looking at the 17 week t-bill today. Rate is at 4.3% . I will see what the 6 month and 1 year rates are soon. Rates were higher 10 days ago according to this:
Weighing 4.5% 1 year CD and next 26 week T-bill
Kathy Jones, managing director and chief fixed income strategist for the Schwab Center for Financial Research, said the central bank is sending signals that the fed funds rate will peak at 5%.
The Fed will likely continue to press toward a 5% terminal rate unless a significant change in the inflation and employment outlook occurs, Jones said. Such a peak would probably be too high than what is warranted, according to Jones, as the economy is “only beginning to feel the impact of the tightening.”
“There’s a good chance that the Fed is going to overshoot,” Jones said.
With all due respect to Ms. Jones, in order to stop inflation with monetary policy, the Fed rate will at some point need to exceed the inflation rate. Look back to the early 1980s. At the moment that will take the rate way past 5%.
Like maybe 8%. If we get to that level of rates on the 30 year I’m going to buy and hold. My life expectancy is 33 years, it’s a good match.
Probably won’t reach 8% as it’s likely the inflation numbers will remain understated
I do like how much T-Notes are paying
I read that the 52 week t-bill may hit 5% next week.