Treasuries, CDs, and Munis | July Update

COMMENTARY

During the first week of July, the fiscal spending bill was signed into law and the debt ceiling was increased by $5 trillion. The increase in deficit spending means the supply of treasuries will rise over the coming quarters. Treasury Secretary Bessent is likely to increase the supply of treasury bills. Through the initial nine months of fiscal year 2025 (ending September 30th, 2025), the budget deficit totaled $1.3 trillion, an increase of $65 billion compared to the same period last year. Tax receipts increased $254 billion and spending outlays rose $320 billion.

U.S. TREASURY AUCTIONS

The U.S. Treasury has a full schedule of upcoming auctions. Investors can purchase treasuries at no cost using the TreasuryDirect.gov website or at most major brokerages, including Vanguard, Fidelity, and Schwab.

BILLS

BONDS

Treasury Inflation-Protected Securities (TIPS)

The current 10-year TIPS yield is 2.01% (+ CPI).

MONEY MARKET & CD RATES

Below are some of the most attractive money market yields and CD rates available nationwide, sorted by maturities from three months to five years. Click here to see if a bank is FDIC-insured. You can click on the institution name in the list below to go directly to the bank’s website for more information regarding CD purchase minimums, etc. We always recommend individual CD purchases be limited to within the $250,000 FDIC insurance limit.

Money Market Funds:

• Vanguard Federal Money Market Fund (VMFXX) 4.21%

• Vanguard Municipal Money Market Fund (VMSXX) 1.73% (tax-exempt)

• Fidelity Money Market Fund (SPRXX) 4.01%

• Schwab Value Advantage Money Fund (SWVXX) 4.13%

The tax-equivalent yield from VMSXX is lower than the VMFXX yield, making VMFXX the more attractive option. Below is a tax-equivalent yield comparison of VMFXX versus VMSXX:

CDs

3-months:

• Popular Direct 4.40%

• Brilliant Bank 4.35%

• Ivy Bank 4.35%

6-months:

• Northern Bank Direct 4.60%

• Seattle Bank 4.60% (9 months)

• able Banking 4.50%

• Total Bank 4.41%

12-months:

• My eBanc 4.45% ($50k minimum)

• NexBank 4.40%

• Popular Direct 4.40%

18-months:

• My eBanc 4.30% ($50k minimum)

• Sallie Mae 4.30% (15 months)

• Popular Direct 4.26%

2-years:

• My eBanc 4.20% ($50k minimum)

• Popular Direct 4.20%

• Sallie Mae 4.10%

3-years:

• Popular Direct 4.25%

• Total Bank 4.00%

• Synchrony Bank 4.00%

4-years:

• Popular Direct 4.15%

• Prime Alliance Bank 4.00%

• First National Bank of America 3.91%

5-years:

• Popular Direct 4.20%

• Synchrony Bank 4.15%

• Sallie Mae 4.00%

MUNICIPAL BOND AUCTIONS

Below is a list of some of the largest upcoming municipal bond offerings nationwide:

Source: EMMA, BondLink

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In case you missed it, here is our Model Portfolio Update published earlier this month.