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REDDIT

Short term CDs and the 10yr T

V
Apr 10, 2025 · 23:34

My credit union is offering short term CDs at basically the same rate of the current bond rate (4.28% over 9mo). I assume they take my CD funds and buy 10yr T, and just cash me out early with *slightly* a lower rate, and profit.

The US admin indirectly, IMO all but admitted, the reason they paused teriffs was because bond rates were rising too quickly. That makes it in the best interest of other countries to try to raise or at least keep the 10yr T at +4%.

Isn't buying a $1k, 9mo CD every month that it remains over 4% a no brainer? Espescially while the markets are so crazy?