Treasuries, CDs, and Munis | February Rates Update
3.0% headline CPI and 3.3% core CPI inflation figures should delay any additional FOMC rate cuts until later this year. It is difficult to find CDs with rates that are more attractive than treasuries.
U.S. TREASURY AUCTIONS
U.S. Treasury has a full schedule of upcoming auctions. Investors can purchase treasuries at no cost using the TreasuryDirect.gov website or at most major brokerages including Vanguard, Fidelity, and Schwab.
BILLS
NOTES
BONDS
Treasury Inflation-Protected Securities (TIPS)
The current 30-year TIPS yield is 2.35% (+ CPI).
Floating Rate Notes (FRNs)
Floating Rate Notes explained here.
MONEY MARKET & CD RATES
Below are some of the most attractive money market yields and CD rates available nationwide, sorted by maturities from three months to five years. Click here to see if a bank is FDIC-insured. You can click on the institution name in the list below to go directly to the bank’s website for more information regarding CD purchase minimums, etc. We always recommend individual CD purchases be limited to within the $250,000 FDIC insurance limit.
Money Market Funds:
Vanguard Municipal Money Market Fund 3.05% (tax-exempt)
CDs
3-months:
Brilliant Bank 4.60%
Total Bank 4.51%
Quontic Bank 4.50%
6-months:
Mutual One Bank 4.59%
My eBanc 4.55% ($50k minimum)
Total Bank 4.51%
12-months:
Total Bank 4.50%
My eBanc 4.40% ($50k minimum)
NexBank 4.40%
18-months:
My eBanc 4.35% ($50k minimum)
Brilliant Bank 4.35% (15 months)
Popular Direct 4.15%
2-years:
Flagstar Bank 4.25%
My eBanc 4.25% ($50k minimum)
Popular Direct 4.20%
3-years:
Popular Direct 4.15%
Marcus by Goldman Sachs 4.10%
4-years:
Popular Direct 4.05%
TAB Bank 3.86%
5-years:
Popular Direct 4.20%
Synchrony Bank 4.15%
MUNICIPAL BOND AUCTIONS
Below is a list of some of the largest upcoming municipal bond offerings nationwide:
Source: EMMA, BondLink
CONSUMER PRICE INDEX (CPI) | JANUARY 2024
The latest CPI inflation report showed that headline CPI inflation increased 0.5% in January and is up 3.0% year over year. The core CPI, which excludes the volatile food and energy components, rose 0.4% in January and is up 3.3% year over year. These inflation figures remain too high for the FOMC to lower the federal funds rate, in our view. We expect no monetary policy change at the upcoming FOMC meeting on March 18th and 19th.
Headline CPI:
+0.5% seasonally adjusted in January, following +0.4% in December
+3.0% year-over-year
Core CPI: (excludes food and energy)
+0.4% seasonally adjusted in January, following +0.2% in December
+3.3% year-over-year
Median and 16% trimmed-mean CPI from Cleveland Fed:
Median +0.3% in January and +3.6% YoY
16% trimmed-mean +0.4% in January and +3.1% YoY
Following the stronger than expected inflation figures this week, FOMC rate cuts have been pushed back into the second half of 2025 per CME FedWatch:
In case you missed it, here is our Model Portfolio Update published earlier this month.