Treasury rates
Happy New Year Terry
I know you don’t have a crystal ball, but in your opinion, do you think rates on t bills and notes could hit or break 5% this year ? I also see that some banks are now offering better rates on cds. One major bank near me is offering a 59 month cd at 4.5%. Thank you.
Terry Says
Well, a lot depends on how long you’re willing to tie up your money. In five years, if the Fed destroys inflation, you’ll be happy you locked your money in at 4.5%. But if you need it sooner, you’ll pay a penalty on the CD if you have to get out (unless it’s in an IRA and you need to take a RMD).
It’s possible that if the Fed tightens again, you could see 6-month bill rates top 5%. We’re almost there now, hovering around 4.755 lately.
Like the circus barker says “you pays your money and you takes your choices”!
