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Author: imdajunkman Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35392  
Subject: 4-Week Bill = 5.227% Date: 8/8/2006 1:58 PM
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The most recently auctioned 4-week bill (to be issued 08/10) offers an investment yield of 5.227%, which is up a bit from last week's 5.212%, just as the yields for this week's 13-week and the 26-week bills have also climbed a bit.

My bet would have been retracements from last week's highs. So, I'm wrong again. Why is the market raising short-term interest rates when the Fed is supposed to be pausing, as is suggested by the following and typical comment?

The Fed is Done Raising Rates by Dr. Steve Sjuggerud

The U.S. Federal Reserve has raised interest rates 18 times since June of 2004… bringing us an interest rate of 5.25%. The big question in the markets this week is… Is the Fed finished? The answer is yes… This is not a bold prediction by me… it's simply what the markets are telling us… Millions of dollars worth of bets are placed every day on what the Fed will do about interest rates. These bets are placed on the Chicago Board of Trade (www.cbot.com). Currently, the market is “predicting” no change in interest rates at this Fed meeting… or the next one…or the next one. In fact, the betting at the Chicago Board of Trade suggests that the Fed won't raise – or lower – interest rates again in 2006.

[excerpted from “Daily Wealth”, a free and often insightful newsletter.]

I have no idea of the explanations. So I stick with what I can verify for myself, and I stick to my investment plan, which is to keep building 4-week and 26-week ladders until the evidence says I should do something else.

Charlie
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Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17768 of 35392
Subject: Re: 4-Week Bill = 5.227% Date: 8/9/2006 10:25 AM
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How do you buy the 4-week? I don't see it on Treasury Direct, or on the Fidelity listings.

Thanks,
Wendy

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Author: OxBeaux Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17769 of 35392
Subject: Re: 4-Week Bill = 5.227% Date: 8/9/2006 10:42 AM
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How do you buy the 4-week? I don't see it on Treasury Direct, or on the Fidelity listings.

Wendy,

I purchased 28 day bills through Fidelity yesterday. Monday was the deadline for the order and settlement day is Thursday.

OxBeaux

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Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17770 of 35392
Subject: Re: 4-Week Bill = 5.227% Date: 8/9/2006 10:56 AM
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<I purchased 28 day bills through Fidelity yesterday. >

I didn't see them listed, on the fixed income Treasury auction list. Was that my oversight, or did you speak with a Fidelity broker?
Thanks,
Wendy

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Author: imdajunkman Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17773 of 35392
Subject: Re: 4-Week Bill = 5.227% Date: 8/9/2006 11:13 AM
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Wendy,

The following link will take you where you need to go.

http://www.treasurydirect.gov/indiv/myaccount/myaccount.htm

TD comes in two flavors: old-fashioned and new-fashioned (aka, paperless), also known as "Legacy". Legacy doesn't sell the 4-week bill, as has been mentioned in this forum repeatedly. But TD Electronic does sell them, with an order dealine of approximately 11 AM Eastern on Tuesaday (the day of the auction.)

Also, if for nothing else than practice, phone them and ask a question. Their customer service reps are knowledgible and friendly. (They want to borrow your money, and they want to make the process as easy as possible.)

Charlie

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Author: howardgt One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17774 of 35392
Subject: Re: 4-Week Bill = 5.227% Date: 8/9/2006 11:21 AM
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<< I didn't see them listed, on the fixed income Treasury auction list. Was that my oversight, or did you speak with a Fidelity broker? >>

I regularly buy (rollover) 28day, 13week and 26week treasuries at Fidelity.

The 13/26 week treasuries are auctioned most Mondays and Fidelity lists them on Friday.

The 28day treasury is auctioned on Tuesdays and Fidelity lists them on Monday (after the 13/26 week results).

Howard

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Author: Alfred4 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17775 of 35392
Subject: Re: 4-Week Bill = 5.227% Date: 8/9/2006 11:45 AM
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How do you buy the 4-week? I don't see it on Treasury Direct, or on the Fidelity listings.

Wendy,

You will not find the bills listed until announcement day which is Monday. The auction occurs Tuesday and the issue day is Thursday.

The funds for purchase must be in place by Thursday.

I have found Treasury-Direct to be a great place to buy... everything goes exactly as you expect. The funds withdrawn from my bank account are exactly to the penny of what I expected. Using the bond desk at brokerage houses has not been as pleasent.

Check out the link below to find the proposed sale dates for Treasury products.


http://www.treasurydirect.gov/instit/annceresult/press/preanre/2006/2006_4week.htm

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Author: OxBeaux Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17778 of 35392
Subject: Re: 4-Week Bill = 5.227% Date: 8/9/2006 12:14 PM
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I didn't see them listed, on the fixed income Treasury auction list. Was that my oversight, or did you speak with a Fidelity broker?

They were listed and I did it all on line.

OxBeaux

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Author: AcmeFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17783 of 35392
Subject: Re: 4-Week Bill = 5.227% Date: 8/10/2006 12:35 PM
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How does TD report your interest at the end of the year? Is everything aggregated for a single number that can be included on your tax form? Or do you have to itemize each transaction made during the year?

Acme

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