Treasuries are entirely state tax-free, not all MM options are (FDLXX was 9x% state tax-free last year).Why would an individual investor buy a 4-week treasury versus keeping funds in a money market (state tax free version if necessary)? Variations in returns from a money market are typically zero to nil in a four week period. Feels like market timing, and doesn't seem like it's worth the effort.
Treasuries generally have a slightly higher yield - on average, especially in states with taxes.
Many that are buying a four week Treasury are probably doing so with Auto Roll enabled, thereby replacing each 4-week with a new 4-week when it expires.
In my case, I have a rolling ladder of 1-month (aka 4-week), 3-month, and 6-month treasuries - one of each maturing each month.
Statistics: Posted by SnowBog — Fri Aug 09, 2024 11:52 am — Replies 11 — Views 432