Fed rate cuts – treasuries

Now that the Fed has started its rate cutting cycle, is it still prudent to save with U.S. treasuries ?

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Yes. I consider saving as putting aside money for another day. As long as purchasing power remains the same.

The rule of thumb to determine this is :

if interest rates are higher than inflation rate, treasuries are maintaining its purchasing power.

I compare Fed funds rate ( 3 month rate ) currently 4.75% to inflation rate — core inflation is currently 3.2% . Rates are higher by 1.55%. Data for inflation can be found on bls.gov .

*

I am continuing to put excess savings ( wages – expenses ) into short dated treasuries. Preferably, 3 months to maturity.

When treasuries redeem, I recycle those back into more t-bills.

Taking a break for a little bit.

Be back in fall …

Hope we’re all enjoying our wonderful lives !

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In this lecture, Hall encapsulates his belief in human’s ” life purpose.”

– life purpose

For all those who are interested.

Back on Feb. 3rd, ’23 , I alluded to primal sleep.

We experience primal sleep when we fall asleep with a single thought or feeling. Usually, we have a zillion things on our minds. So, corralling all those thoughts down to one won’t be easy. Is it worth the effort ? Only way to know is to experience its effects for oneself.

However, we don’t want to confuse single thought with no-thought. No thought brings the mind and emotion into samadhi. Samadhi sleep results in deep sleep or delta frequency sleep ~ about 1 to 3 hertz cycles per second.

Give primal a whirl and see how it goes. What the mind and emotion focuses on will determine its frequency.

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BTW, falling asleep to Hall is alpha frequency sleep ~ about 8 to 12 hertz. Similar to falling asleep while watching t.v.

This is a great lecture : for sleep. Must’ve fallen asleep on numerous evenings without reaching the halfway mark even though I start the lecture later on the time bar each time. However, when I managed to get through the whole talk, I found some fine esoteric gems scattered throughout.

– communication

* Perhaps save and listen on those hard-to-sleep nights.

Back in Nov ’22, I updated my view on i-bonds.

The interest rate at the time was 6.48% for all bonds purchased in Nov. ’21 and May ’22. The current yield is 3.94% for those bonds.

Inflation was 7.1% trending down from a high of 9.1% that summer. Since then, inflation hit a low of 3.1% in Nov ’23 and has been drifting upward to 3.5%.

*

So, what I am doing with all i-bonds purchased in Nov ’21 and May ’22 ?

– I have rolled them all into short term treasury bills – treasuries that mature within 1 year.

Short term bill rates — around 5% — are yielding more than current i-bond rate and inflation doesn’t seem like it can go much higher from here.

If inflation continues higher, I may start to roll some maturing short term bills into 2 year notes as long as the 2 year yield hovers near 5%.

Here’s Hall’s twist on the concept of evolution for those who believe humans have an eternal soul. If not, skip to 18 to 31 min mark.

– seven laws

* Hall has over 2,500 hours of lectures on esoteric sciences. I will attempt getting to them all while pointing out ones I find of particular interest.

I anticipate many ^restless^ nights of sleep ahead …

Now that the federal reserve has indicated they are willing to start lowering rates, is it a good idea to start buying longer dated treasuries ?

Yes ! As long as the treasuries are yielding close to the 3 month rate of 5.3 %

Currently, the one year rate is yielding 5.03 % and 6 month rate is yielding close to 5.3 %.

How about the 2 year treasury note currently yielding 4.6 % ?

With the latest sticky cpi ( consumer price index ) , the FED may have to wait a little longer to start cutting rates. So, there may be a better opportunity to lock in 2 year rates in the next few months if safety and liquidity is of prime concern.

* This is not financial advice. Just my own thought process when investing in these financial instruments.

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