Thread: New G Fund Rate?

Short Term Government Securities have dropped.
http://www.tsp.gov/rates/fundsheet-gfund.pdf

This article explains why it varies pretty well.
http://www.federaldaily.com/financial/TSP.htm

Thanks for your help.

Expect it to continue to drop for another reason as well.

1. If they cut interest rates today, the short term rate T-bills could drop to near zero, and
2. since TSP decided at a board meeting not too long ago to increase the percentage that they hold in short term notes vs. long term (30 year) notes,

the overall return rate of the "G" should go down even more. I read that in the TSP Board minutes not too long ago- perhaps a couple of months ago.

Interest rate cut, plus more short term vs. long term notes, means that pretty soon the G fund will be returning barely anything at all.

But then again, anything positive is good, compared to the last year of stock fund returns....:-)

Thanks for the heads-up James.

How do you think this will affect future TSP Loans?

Originally Posted by James48843

Expect it to continue to drop for another reason as well.

1. If they cut interest rates today, the short term rate T-bills could drop to near zero, and
2. since TSP decided at a board meeting not too long ago to increase the percentage that they hold in short term notes vs. long term (30 year) notes,

the overall return rate of the "G" should go down even more. I read that in the TSP Board minutes not too long ago- perhaps a couple of months ago.

Interest rate cut, plus more short term vs. long term notes, means that pretty soon the G fund will be returning barely anything at all.

But then again, anything positive is good, compared to the last year of stock fund returns....:-)

It wouldn't surprise me if G fund pays out at 1.5 to 2% for the forseeable future. The FED will cut rates so it is cheaper to finanace a multi-Trillion deficit. It kind of reminds me of the sub-prime, 0% interest, and liar loans.....that put the country in this big mess......only the government is the BIG borrower now with a questionable credit rating.
What is going to happen when all these foreign countries quit buying our debt? Will it take a wheelbarrow full of American dollars to buy a gallon of milk?

Need to buy a loaf of bread and a gallon of milk?

I think he's applying for the open Illinois senator seat.

Originally Posted by tsptalk

I think he's applying for the open Illinois senator seat.

LOL, that's a good one.

Anyone know what the symbol is to track the G fund is in stock program? I have Stock Broker Pro on my phone, and I have all the funds set up to get updates, but can't find a way to enter G fund in there. Also, I can't figure out how to calculate it day to day when I enter my shares and share price. I enter the info on the day I moved my money, and it keeps showing me a 3000%+ profit, with the value as 3,000,000 plus. Unfortunately, there's not that much in there. I was hoping it would show me a close approximation of it's value. I must not be understanding how $ calculations work on these programs. I'm new to stock investing, so any help would be appreciated. Thanks!!

Anyone know what the symbol is to track the G fund is in stock program?

As far as I know, there is no stock symbol to track.
See http://www.tsp.gov/rates/fundsheet-gfund.pdf

I am sure someone soon will give you more info.