UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Author: ballenta Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: T-Bill yield rates Date: 11/6/2001 4:20 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I noticed recently that T-Bills look like extremely
attractive investments considering you can buy some
for a price like $9782 per $10000 with only a few
days left until maturity. Is there a way to turn
a huge profit on these or is there some restriction
to buying sets of T-bills?
Print the post Back To Top
Author: foobar73 Big red star, 1000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2370 of 35400
Subject: Re: T-Bill yield rates Date: 11/6/2001 4:41 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
There are no restrictions on holding T-Bills that I know of, but where are you getting these prices? Auction purchases direct from the government are going for $9983 per $10000 for 30-day issues.

Print the post Back To Top
Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2372 of 35400
Subject: Re: T-Bill yield rates Date: 11/6/2001 5:41 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Are you looking at the bid price or the ask price?

Ask whoever quoted you that price if you can buy at that price.

Print the post Back To Top
Author: galagan Big gold star, 5000 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2377 of 35400
Subject: Re: T-Bill yield rates Date: 11/7/2001 6:27 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Just so we're clear, ballenta, just because the Wall Street Journal quotes a bid or ask price around 2.18 on a t-bill with 6 days remaining does not mean that you can buy or sell for $(100-2.18) per $100. Those bid/ask prices are annualized.

If you've actually got a source to get paid over $2 per $100 for an investment of 6 days, send me an address!

dan

Print the post Back To Top
Author: ballenta Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2382 of 35400
Subject: Re: T-Bill yield rates Date: 11/8/2001 7:03 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
that is the bid price from the WSJ from Nov. 6th.

Print the post Back To Top
Author: galagan Big gold star, 5000 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2385 of 35400
Subject: Re: T-Bill yield rates Date: 11/8/2001 4:53 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Yeah, those bid prices are annualized. So for a $1000 t-bill bid 2.18 with 3 days to go to maturity, you'd get $1000 x (1-(0.0218 x 3 / 365)) or approximately $999.82.

dan

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Advertisement