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Hello and thank you in advance for any guidance you can provide.

Prior poster w505a graciously made note of the 91 day T-bill symbol IRX, but does anyone know how or if you can track the new 1 year constant maturity treasury note that will be used to determine the interest rate for SLS loans? I know that the auction has yet to occur, but any help is appreciated.

mjk
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Mjk, you know they (i.e. Treasury) are not selling the 1-year anymore. I think the last one was back in November 2000. Ed has to come up with some other way to represent a one-year interest rate, and I will be happy to look into this for you.

The "IRX" is actually an option that tracks the 91-day rate. The rate can also be found in the New York Times business section, usually in a small box "Key Rates" and "3-month T-bills". IRX and the figure reported are usually the same. Sometimes one is off by one or two basis points.

People have to add a few basis points (nine or so lately) on to this "discount rate" to determine the "investment rate", which treats the 91-day bill as if it were a one-year investment (since you could re-invest 3 month money four times during a year.) There is a formula in the regs, but it is easier to visit:

http://www.publicdebt.treas.gov/servlet/OFBills

and just have Treasury's figure there for you.


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Oops, I was wrong about the final auction of the 1-year. It was February 2001.

http://www.treas.gov/press/releases/po15.htm


(I just act like I know everything . . .)


Treasury says that they do not come up with the "Constant Maturity Treasury (CMT)"

http://www.publicdebt.treas.gov/sec/secfaq.htm#secfaq5

rather, they refer people to the Federal Reserve Board's "Release H.15",


http://www.federalreserve.gov/releases/H15/


Which is published every Monday (it turns out I see it over the fax at work, as a matter of fact. Now I know how to get it online.)

I guess you want to tab the one that would include June 1, or which ever day they are using for the SLS loans.

One year money is even cheaper than shorter-term, it looks like.
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