Some of the short term stuff is attractive and MUCH better than what my personal bank is paying. 1-year duration paying 4.5%, risk-free? Below inflation sure, but still [relatively] decent. Online banks are paying 2%, but don't feel like going through the motions of opening an account. Plus, it would be a new experience to learn about the purchasing process for U.S. securities.
Does anyone know how to go about purchasing based on current yields? Open to alternatives on risk-adjusted basis.
You buy them directly from the government, check out Treasury Direct. You can even buy savings bonds with your IRS refund. I'd keep a close eye on the Fed Funds rate as it is set manually by the fed and has a powerful effect on yields, currency value, equity, and the entire global economy.
Keep in mind that actual bond prices in the futures market are inverse to yields, as higher yields means lower valuation for older bonds. That is why bond futures are plummeting right now while yields are skyrocketing, so now is a not a bad time to buy t-bills and t-bonds directly. If you are buying bonds and bills directly, you are typically paid every six months, and the interest rate is fixed at sale. It's also not "risk-free", but risk is pretty low as it would involve the collapse of the issuing government.
It's an excellent way to invest savings or to live on passive income if you have a million or two. As boomers start retiring, a lot of them will be cashing out their 401(k)s and buying bonds. Stocks get all the attention but bonds are quietly a larger market. I'd say bond trading is more intellectually demanding and not as irrational as stocks, but both have their role in the economy. Direct bond investing on the other hand is pretty simple.
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