Lock in 6% if you think that rates would head downwards. Insured till $250k minimum so as good as treasurys
If rates are headed down I'd think either: A) you'd want to get into stocks B) you'd want something inflation protected Plus treasuries are tax advantaged. Given what happened with SVB where they bailed out large uninsured amounts in accounts, I think a reappraisal of the balance the have available to protect your account is in order.
Tax advantaged only pays off off for a few states where over a 10% state tax exists. Also comparing a 30 day rate to a one year rate.. The last auction the intermediate stuff fell below 5 so reinvestment risk puts a yield hungry investor at a disadvantage in the 30 day product. Comparing bid one ask one insured products to equities is a bogus comparison. The real bet isn't purely on rates, but on the reinvestment risk. You can also trade options against the treasuries - if you have possession - and match or better the 6%, which is a real plus because you are doing what the higher paying CD is doing. That would again exacerbate the re-investment issue and alter the tax liability.
It's interesting to see how other people think about these things. For me I see the reinvestment risk as minimal. Break your money up in 4 chunks. Have purchases staged in1wk increments on 1 month treasuries. How much do you really think the rate is going to move in a single week? Even if there's some crazy emergency panic set rates to zero event, I'll only have 1/4 or that capital tied up and it will be tied up for a single month. Compare that to buying a CD at a bank that's being required to maintain a zero percent reserve, and who is insured by an organization that has shown itself willing to raid the insurance funds to bail out those who weren't covered but happen to be rich and well connected. I think that in a bank collapse I would have the potential to be locked out of all that capital for significantly more than one month. I suppose I just don't see the point of buying the crappy part of an inverted yield curve. I want to be compensated if I'm locking up my money. IMO, if they significantly cut rates, inflation is going to spike again. In that situation I think I'd rather have stocks or I bonds. I also think you have to compare bonds to everything else. A company like Eli Lily has been around for longer than the federal reserve. I don't see a CD in a regional bank I've never heard of, that is willing to pay above market rates, as a particularly safe investment. But I also think you had to be a crazy person to buy a 30 year treasury at 1.5%.
Risk losing all my money in a bank for a little 6%??? No thanks, I'll put it where it needs to be and get 600%...
%% ARTICLE said ''deals aren't lasting long'' SVB proved what some knew\ bonds are not risk free @ all; even though they muddled it with woke -broke goofs I like a bit less tax free , in ROTH , SCHW money market+ dont have to lock it up; especially with 4 th quarter ETFs history........