Treasuries

[2Driver]

My bet is on more issuance. Bills are coming due and Bidenomics has the country in the same shape as a 2006 over leveraged homeowner with a variable mortgage, a 2nd house, sandrail, RV and a Magic deck boat.

I just bought a AZ muni for the first time in awhile …. 5% tax free coupon. That’s the equivalent as a 7.5% treasury.

 

[c_land]

My bet is on more issuance. Bills are coming due Bidenomics has the country in the same shape as a 2006 over leveraged homeowner with a variable mortgage, a 2nd house, sandrail, RV and a Magic deck boat.

I just bought a AZ muni for the first time in awhile …. 5% tax free coupon. That’s the equivalent as a 6.7% treasury.

Absolutely. I am wondering if issuance is skewed towards the long end or the short end of the curve.

 

[coolchange]

My bet is on more issuance. Bills are coming due and Bidenomics has the country in the same shape as a 2006 over leveraged homeowner with a variable mortgage, a 2nd house, sandrail, RV and a Magic deck boat.

I just bought a AZ muni for the first time in awhile …. 5% tax free coupon. That’s the equivalent as a 6.7% treasury.

Treasuries are state tax exempt? Your saying fed exempt?

 

[2Driver]

Treasuries are state tax exempt? Your saying fed exempt?

Yes the equivalent in comparison to treasuries taking into account no state tax

I just plug in the muni yield into a tax equivalent calculator that takes into account state tax rates, income and filing status to get taxable equivalents for a full tax investment, out of state muni and treasury yields

Heres the one I use. the bond I bought is actually 7.5% equivalent in a treasury.

Tax-Equivalent Yield Calculator | Eaton Vance

Investors should examine taxable-equivalent yields, as well as applicable risks, to help determine whether muni bonds represent a good value. The good news is that our Tax-Equivalent Yield Calculator can help.

www.eatonvance.com

 

[boatnam2]

Yes the equivalent in comparison to treasuries taking into account no state tax

I just plug in the muni yield into a tax equivalent calculator that takes into account state tax rates, income and filing status to get taxable equivalents for a full tax investment, out of state muni and treasury yields

Heres the one I use. the bond I bought is actually 7.5% equivalent in a treasury.

Tax-Equivalent Yield Calculator | Eaton Vance

Investors should examine taxable-equivalent yields, as well as applicable risks, to help determine whether muni bonds represent a good value. The good news is that our Tax-Equivalent Yield Calculator can help.

www.eatonvance.com

Hmmm, interesting! I entered info and it tells me 4.1 equivalent is 9.4 %?

 

[2Driver]

Hmmm, interesting! I entered info and it tells me 4.1 equivalent is 9.4 %?

a lot depends on your tax rate. That’s sounds like something is off. IDK Are you reading the right column results by mistake. That’s your tax rate not the equivalent yield

If you are comparing it to a fully taxable investment and you live in a high state tax area like Ca then the equivalent would be higher.

 

[boatnam2]

a lot depends on your tax rate. That’s sounds like something is off. IDK Are you reading the right column results by mistake. That’s your tax rate not the equivalent yield

If you are comparing it to a fully taxable investment and you live in a high state tax area like Ca then the equivalent would be higher.

Yea i was on wrong side lol.

 

[c_land]

Absolutely. I am wondering if issuance is skewed towards the long end or the short end of the curve.

For context regarding the rate of growth for the debt:

https://twitter.com/i/web/status/1719075713658057028

Composition for auctions in the coming quarter is out on Wednesday.

 

[regor]

Stocks Tumble, Yield Surge After Catastrophic 30Y Auction Stops With Biggest Tail On Record As Foreign Demand Craters | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

The internals were even worse as foreign bidders (Indirects) tumbled from 65.1% to 60.1%, the lowest since Nov 2021, and with Directs taking down only 15.2%, banks (Dealers) were forced to step up and take the balance, or a whopping 24.7%, double the recent average of 12.7%, and the highest since Nov 2021.

This is a big warning flag because every time we have seen a surge in Dealer takedowns, some sort of Fed intervention - QE or otherwise - has usually followed and we doubt this time will be different.

 

[HTMike]

Can someone point me in the right direction on how to buy municipal bonds ?