Tuesday, March 12, 2024 6:51:53 PM
I just updated my interest rate charts for Feb. Whoa, FLOT is on a tear and I really missed it. For the 12 days of Mar it is not looking so good, but still above SGOV. I am going to wait for the Thursdays bump in SGOV and then I am going to move a large chunk out of SGOV into FLOT.
Since FLOT (owned by iShares again) owns bonds that have floating interest rates, as interest rate rises so does the interest they get paid. FLOT's average maturity is 1.74 years, so I added the 2 year T bill to the data. It tracks really well with the change in FLOT APR. FLOT's average yield to maturity is 6.01%, the 6.23% APR for the first 12 days of March tracks well also since the 2 Year treasury has been pretty much flat.
I think until interest rates start to go down, this could be a good deal.
Since FLOT (owned by iShares again) owns bonds that have floating interest rates, as interest rate rises so does the interest they get paid. FLOT's average maturity is 1.74 years, so I added the 2 year T bill to the data. It tracks really well with the change in FLOT APR. FLOT's average yield to maturity is 6.01%, the 6.23% APR for the first 12 days of March tracks well also since the 2 Year treasury has been pretty much flat.
I think until interest rates start to go down, this could be a good deal.
Trade the Charts and not the Heart - Expect the trend to
continue until it doesn't - Realtime is the real deal
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