Those 5% brokered CDs from two weeks ago are now overpriced to the point of pushing their yield-to-maturities below 4.5% and some even under 4.3%.
I’m sure part of that pricing is the fact that such a premium is the only way to produce any supply (people owning these 5% CDs arent looking to sell them), but it still speaks volumes as to the value that 5% rate is perceived to have right now.
My large CD matured over the weekend, and I dumped 1/3 of the funds into a Cap1 5% offer that yields 4.95% - just because that was the most attractive option available. I’m holding the rest of the cash until the next round of primary offerings come out in the next couple days, hoping they at least hold at a 5% coupon rate.
Yeah, a 5-year, secondary. It’s one of the primary offerings from a few days ago that sold out. What’s still available is down to a 4.75% YTM now, but TDAmeritrade still has it as the highest non-callable yield.
And there it is - Discover’s new brokered option is at 4.9%, down from 5% last round (two weeks ago). And while I’ve never paid attention to how long these offers generally last to have a comparison, what is available seems to be going fast.
Wish I have a way to join membership at Numerica, I would jump on this deal right away.
Rates seems to have fallen some. Have CD maturing at PSECU that Shinobi had recommended that needed a new place to go.
Yes, I believe that Numerica CU has the best CD deal now. I’ve been searching high and low for a 5%+ with a fairly long maturity period.
I’m probably one of a few people that qualify for an account with them. Living on the west coast and having relatives in Washington and Oregon did help me qualify.
In the same boat. Probably going to have to take something in the 4.5% to 4.75% range and be happy with it. Unless there’s a black Friday special that comes along later this week.
We are going to see quite a few 5-yr 5% CDs in late Dec or Jan. If not then, there will be many next year. I fully expect to see CDs north of 5%.
Why do I say that? Because the Fed is telling us they are going to do 50 basis points in Dec and another 25 in Jan. They are also telling us they are not going to stop until they hit at least 5%. So if liquid savings account rates are 5%, there will have to be long-term CDs higher than 5%. No way the yield curve is going to invert to the degree where 5-yr CDs are lower than savings rates.
People have been panicking about rates since last Spring and they are still freaking out every time there seems to be a dip in rates. All you need to do is listen to what the Fed is telling you.
Long term rates have only decreased since the last Fed .75% increase. There inevitably will be some outlier offers that clear 5%, but I’m not confident 5% will become widespread.
Even today, Bankrate.com only lists ten 5-year CDs that exceed 4%. And brokered CDs issued in the 5% range are bid up enough to push the yield below 4.5%.
Nothing is directly correlated, of course, but an awful lot of people buying these 5-year CDs and Treasuries clearly do not expect rates to get much higher nor stay there for long.
I figured money would be there for 3 mo.s atleast for the promo