8 week t-bill at 0.9%

>8 week t-bill at 0.9%
fuck yeah

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Explain like I'm retarded. what does this mean to me

rates go up

10y yield back to ~2.2-2.6% eoy 2022

Explain like I'm retarded. what does this mean to me

Asuka is STINK!

rates go up
stocks go down
cause wealthy people can park their money with guaranteed returns to protect their money from inflation instead of exposing everything to the riskier stock market

*and right now inflation is a tiny bit higher than 2-3% but still better than throwing everything you have into a market which could be down for the next couple years, you know?
that's also why a lot of boomers never into investing when their savings account yielded such high guaranteed returns of well over 3%

For real. I can explain buying and selling, I can explain defi mechanics, yield farming, LPing, LBPs, blind dutch auctions, token unlocks, vesting schedules, staking, autocompounding, all sorts of arcane crypto shit. But I have literally never understood bonds or treasury markets. There's some weird percentage but when people really want it it goes down instead of up, and people cream their jeans/jump off buildings when the % goes up or down by like 0.01. It makes no sense to me. It's like a bunch of numbers that mean the opposite of what you're used to them meaning relative to crypto or sticks.

Why can't they make these markets understandable for plebs?

because when you have money you also want at least some portion of it in risk-free assets/cash-reserves, and treasury bills are a risk-free asset
hope that made it a little bit clearer, or not at all lol

>inflation reduces greed
hearty kek

The government takes loans from people. The government is also very big, controls the money supply, and is trustworthy (never defaults). Therefore, any time someone gives a loan, they compare the percent interest they get from it, to what they would have gotten from the government instead (risk free rate). Bonds are when you give a loan to a company, and stocks are sort of similar to giving loans as well. When the government offers a better rate, the rest of the markets go down, cause why bother risking money if the government will offer more interest? If the government offers a shittier rate, it forces people to instead give more loans, and cheaper loans to seek a profit.

>The government takes loans from people
Does that mean the government's giving them money or they're giving the government money? See it's already stupid confusing.

you are giving the government money
and then the government gives it back to you plus interest
it's risk-free because when they don't have money, they can just print it. They're the government.

It's literally just staking cash at the treasury for an APY. The government uses the money to pay for nigger food stamps and wars in foreign countries and you get a few percent less than inflation over the long term.

You give the government a loan. Imagine that you have a lot of money and are giving loans. If you can lend the government money and get 2% back, or lend some pajeet who wants to open a liquor store and get 1% back, you pick the government. Or you ovver the pajeet the money but ask for 5% interest.

If the government now offers only 0.2%, you are more willing to offer the pajeet a lower cost loan, at 2% interest. This is part of the decision making process for all banks and big lenders/investors.

Thanks frens
So pretty much what we thought would happen is finally kicking off?

Yes, if you were a bear. No if you were a bull. Some of you are alright, don't invest in the markets this year.

Starting to buy into SQQQ, hope that pans out well.

>only wealthy people can buy government debt!
[laughs in TreasuryDirect]

What is 0.9% supposed to do for me?
0.9% of $10,000 is $90.
And I assume that's annualized.
Convert 0.9% annualized to 8 weeks would be 0.9% * 8/52 = 0.138%.

So if I lock up $10,000 for 8 weeks, I get $13.85 in interest? Is that the point of an 8 week t-bill? To earn $14 bucks off $10k?