Thread: Direction of F Fund ?

Bonds down again!! Believe it or not, CNN reports investors are beginning to price in the possibility or a greater than 25 basis point increase. Is this just speculation and a little fear, or a case of Tom's "the market knows before we do."

CNN Money - June 26 2006: 10:12 AM EDT
"Treasury prices slipped as investors speculated that the central bank may raise interest rates more than a quarter percentage point to combat inflation and that it could raise rates again at its August meeting."

After nine straight declining sessions, bonds opened sharply up today. Those of you sitting in the F fund will finally see some green!

How about that"F" fund, ouhweeeee! 0.1328 (0.14%) @ 10:40AM

Originally Posted by nnuut

How about that"F" fund, ouhweeeee! 0.1328 (0.14%) @ 10:40AM

It will be interesting to see what this translates to with share price. The pattern seems to be that TSP "mitigates" either gain or loss, i.e. the share price usually does not move as far as the AGG index, either up or down. If the pattern holds, for example, a gain of 0.14% in AGG would result in less than 0.1% gain in share price.

This effect has been pointed out many times on this board. As far as I know, no one has put forward a plausible explanation.

Originally Posted by Pilgrim

It will be interesting to see what this translates to with share price. The pattern seems to be that TSP "mitigates" either gain or loss, i.e. the share price usually does not move as far as the AGG index, either up or down. If the pattern holds, for example, a gain of 0.14% in AGG would result in less than 0.1% gain in share price.

This effect has been pointed out many times on this board. As far as I know, no one has put forward a plausible explanation.

True to form. AGG up 0.28% and F fund up 0.19%. WHY!!

Bonds down this morning, F fund may give up most or all of yesterdays gains. We'll see if the same behavior shows up on the downside.

AGG was up 0.35% today. If I understand what TSP is doing, they will pay three cents, or 0.28%. We'll see.

Originally Posted by Pilgrim

AGG was up 0.35% today. If I understand what TSP is doing, they will pay three cents, or 0.28%. We'll see.

Nope, still don't have it. AGG up 0.3501% which should give an F fund price of 10.57689. I expected it to be rounded down to 10.57, but they took away another penny. I don't have a clue.

Man, the F Fund ain't stopping. It should be up another penny or two today.

Lehman's up +.11% today.