I have no opinion on this strategy, but could you share maturity dates, APY, and early withdrawal penalty for your CDs? I would use the depositaccounts.com calculator to determine the net for breaking the CDs and reinvesting in Treasuries of same maturity (2024). At least that gives you a baseline for your decision.travlinman561 wrote: ↑Wed Sep 28, 2022 1:29 pm I have a lot of money in 5 year credit union IRA CDs that mature in 2024, as well as money in an IRA brokerage account. I feel that 5 year treasury yields will probably peak sometime in 2023 (I know this is market timing) before my IRA CDs mature. When I feel that 5 year treasury yields have peaked, would it make sense to buy 5 year treasury futures in my IRA brokerage account (in order to lock in the "peak" 5 year treasury rate) and roll them until my IRA CDs mature in 2024; then use the proceeds from the maturing IRA CDs to buy real 5 year treasury notes at whatever the prevailing interest rate is at that time? Any gain (loss) on the treasury futures should be offset by the decrease (increase) in interest that would be earned on the real 5 year treasury notes during their lifetime. I am looking at this as an alternative to doing an early withdrawal on the CDs and incurring an early withdrawal penalty.
Yields for Treasuries maturing in 2024 are about 4.2%. Curve is flat to inverted for 2024 maturities.
There will be some delay for an IRA transfer, but hopefully only a few days once your CU receives the form. You should be able to indicate on the form to do an early withdrawal from the CD and pay the penalty, so you won't have to break it before they receive the form and are ready to mail the check to your broker. I have done this earlier this year.
Kevin