Thanks to reader Brent who reminded me that the new Treasury Bill auction results are out today. The 4-week, 13-week, and 26-week are paying 3.997%, 4.004%, and 4.345% respectively. This bodes very well for the 4-week T-Bill ladder I am currently building. Last week I bought a $1,000 4-week T-Bill at 3.885%, this week I’m getting another one at 3.997%, which is the equivalent bank rate of 4.54% for my tax situation. I’m going to be setting up a 4-week auto-renewing ladder at TreasuryDirect once I have 4 of these bought. That way they’ll just cycle through each other, renewing automatically at maturity, and I won’t have a thing to do but watch the interest pile up (and faster than at Emigrent Direct). More later.
By Jonathan Ping | Treasury Bills and Bonds | 11/15/05, 1:24pm