6-month US Treasuries were 0.36% APY on January 19th, 2022.
1-month US Treasuries are 1.13% APY today, June 14th, 2022.
-----------
So if you had bought a 6-month US Treasury on Jan 19th, you'd have a 1-month Treasury with .36% APY.
That's worth much much less than the current 1-month US Treasuries that are available, so you'd be forced to sell at a loss if customers requested their money back.
> That's worth much much less than the current 1-month US Treasuries that are available
It's not 10% less, or anywhere close to it. You are only missing out on roughly (1/12) * (0.0113 - 0.0036) * (treasury amount) vs a 1 month treasury bought today..I'm having trouble finding a price chart for 1 month treasuries.
6-month is obviously more sensitive to the rate drop than 1 month, but the 10% number you are referencing is almost certainly for long term treasuries, not short term..
dragontamer|3 years ago
1-month US Treasuries are 1.13% APY today, June 14th, 2022.
-----------
So if you had bought a 6-month US Treasury on Jan 19th, you'd have a 1-month Treasury with .36% APY.
That's worth much much less than the current 1-month US Treasuries that are available, so you'd be forced to sell at a loss if customers requested their money back.
thebean11|3 years ago
It's not 10% less, or anywhere close to it. You are only missing out on roughly (1/12) * (0.0113 - 0.0036) * (treasury amount) vs a 1 month treasury bought today..I'm having trouble finding a price chart for 1 month treasuries.
6-month is obviously more sensitive to the rate drop than 1 month, but the 10% number you are referencing is almost certainly for long term treasuries, not short term..