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Old 05-18-2022, 11:07 AM   #441
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I just do it for convenience in case I forget. If something changes, it's easy to get back in and change the number of renewals.
Thanks, that is my thinking also. I can also build a short duration ladder and have income coming in each month of I set it up right.
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Old 05-18-2022, 01:05 PM   #442
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Marcus (Goldman Sachs) has raised its savings account rate to .7%
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Old 05-18-2022, 01:13 PM   #443
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One year treasury above 2%, I assume you got it from secondary US treasury. I have been buying new short term treasury in Fido that issued on the weekly basis. I didn't see a 12month new treasury bill today in Fido, it looks like I have to buy it in the secondary market.
I fear to do so as I am afraid I would make mistakes. Currently there are 3 trades at rate 2.213, 2.226 and 2.229 that expires 5/31/2023. One of them that asks quantity 35k, limit price 100.568. Can I buy more than 35k? the limit price is over 100 while others under 100, what's that mean?
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Old 05-18-2022, 01:19 PM   #444
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One year treasury above 2%, I assume you got it from secondary US treasury. I have been buying new short term treasury in Fido that issued on the weekly basis. I didn't see a 12month new treasury bill today in Fido, it looks like I have to buy it in the secondary market.

I fear to do so as I am afraid I would make mistakes. Currently there are 3 trades at rate 2.213, 2.226 and 2.229 that expires 5/31/2023. One of them that asks quantity 35k, limit price 100.568. Can I buy more than 35k? the limit price is over 100 while others under 100, what's that mean?

I bought it in my Schwab brokerage at auction. I get emails from Treasury Direct informing me of upcoming auctions. I saw one for today and yesterday put in an order in my Schwab account for a $10,000 one year treasury. I got an email with the auction results and a little while later it was in my account. Couldn’t be any easier.
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Old 05-18-2022, 01:25 PM   #445
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One year treasury above 2%, I assume you got it from secondary US treasury. I have been buying new short term treasury in Fido that issued on the weekly basis. I didn't see a 12month new treasury bill today in Fido, it looks like I have to buy it in the secondary market.
I fear to do so as I am afraid I would make mistakes. Currently there are 3 trades at rate 2.213, 2.226 and 2.229 that expires 5/31/2023. One of them that asks quantity 35k, limit price 100.568. Can I buy more than 35k? the limit price is over 100 while others under 100, what's that mean?
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I bought it in my Schwab brokerage at auction. I get emails from Treasury Direct informing me of upcoming auctions. I saw one for today and yesterday put in an order in my Schwab account for a $10,000 one year treasury. I got an email with the auction results and a little while later it was in my account. Couldn’t be any easier.
What are the mechanics of those transactions through brokerages?

You search by CUSIP number?

What are the denominations of these 1-year Treasury bills, $100 so you'd be paying less than $100 for each?

Then at maturity, you will get however many $100 (or whatever denomination) bills you bought as the value of those holdings?

So say you paid $9,850 worth and at maturity, your Fidelity or Schwab account will show $10,000 as the balance?

Does Fidelity or Schwab impose fees or commissions?

Then they issue you a 1099-G or something like that at the end of the year?
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Old 05-18-2022, 01:40 PM   #446
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Quote:
Originally Posted by explanade;
What are the mechanics of those transactions through brokerages?
You search by CUSIP number?
What are the denominations of these 1-year Treasury bills, $100 so you'd be paying less than $100 for each?
Then at maturity, you will get however many $100 (or whatever denomination) bills you bought as the value of those holdings?
So say you paid $9,850 worth and at maturity, your Fidelity or Schwab account will show $10,000 as the balance?
Does Fidelity or Schwab impose fees or commissions?
Then they issue you a 1099-G or something like that at the end of the year?

Schwab has an option to search for new issues. You have to invest at least $1,000 and more in $1,000 increments. The email announcement I get from the Treasury does give the CUSIP code that you can search on if you prefer. The treasury bill cost me $9,787.67 and I will receive $10,000.00 in one year from tomorrow. There are no fees or spreads for Treasuries bought at auction. I expect I’ll get a 1099INT if I hold the bill through maturity, which I expect to do.
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Old 05-18-2022, 01:58 PM   #447
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Schwab has an option to search for new issues. You have to invest at least $1,000 and more in $1,000 increments. The email announcement I get from the Treasury does give the CUSIP code that you can search on if you prefer. The treasury bill cost me $9,787.67 and I will receive $10,000.00 in one year from tomorrow. There are no fees or spreads for Treasuries bought at auction. I expect I’ll get a 1099INT if I hold the bill through maturity, which I expect to do.
Thanks for the answers.

How do you tell if you're buying at auction vs. secondary market?

Are there fees for purchasing through the secondary market?
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Old 05-18-2022, 02:23 PM   #448
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I just picked up 3 and 6-month treasuries for 1.129% and 1.455% for 25K with money that had been sitting in Ally. Beats the 0.6% it was earning there.
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Old 05-18-2022, 02:38 PM   #449
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Beats the 0.6% it was earning there.
Funny, just as I read your post I got an email from Marcus saying they are bumping my rate to .7%
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Old 05-18-2022, 02:43 PM   #450
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Funny, just as I read your post I got an email from Marcus saying they are bumping my rate to .7%
Nice, though I'll still take the 1.129 and 1.455 with the T-bills even if Ally follows suit and goes up to 0.7. I don't need this money anytime soon. We've still got plenty of liquid cash for emergencies.
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Old 05-18-2022, 03:07 PM   #451
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Just picked up a one year treasury from auction at 2.164%. Not too bad.
Thanks. I bought one today also. I guess about 2.1% is where the 52 week bill ended up. The 26 week ended up at 1.52%.
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Old 05-18-2022, 03:30 PM   #452
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Is there an advantage to a Treasury Bill, over say a 1 yr CD at 2.1%?
Thanks!
As it has been mentioned, if you are in an income tax state then the treasury bill will probably be tax exempt.
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Old 05-18-2022, 05:23 PM   #453
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I noticed one can buy treasury bills at auction and have them automatically rolled over at maturity. Is their any advantage to doing this or is it generally done for convenience?
It’s very convenient. And easy to cancel or modify before maturity.
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Old 05-18-2022, 05:29 PM   #454
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Thanks for the answers.

How do you tell if you're buying at auction vs. secondary market?

Are there fees for purchasing through the secondary market?
At Fidelity to buy a treasury at auction you have to buy a “new issue”.

There aren’t explicit fees for purchasing treasuries via the secondary market thru Fidelity, that is instead covered by the bid/ask spread.
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Old 05-18-2022, 05:44 PM   #455
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Currently there are 3 trades at rate 2.213, 2.226 and 2.229 that expires 5/31/2023. One of them that asks quantity 35k, limit price 100.568. Can I buy more than 35k? the limit price is over 100 while others under 100, what's that mean?


There is a feature on Fido called “depth of book”. It’s a little book icon in a column to the right of the Yield/Price info. The listed Yield/Price is best available but the min order qty is often huge. If you click “depth of book” icon a list of additional dealers will pop up. I ALWAYS find another dealer that has smaller quantities available for just a slightly higher price. Instead clicking the icon you can also just click the “buy” button and a list will popup with with various yield/price/ min qty offers. Sometimes my bid does not go thru and I have to submit a few times or RAISE the bid by a penny or two due to market dynamics (or so I’m told). It’s great learning this stuff together, right?
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Old 05-18-2022, 06:14 PM   #456
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Per Deposit Accounts, Department of Commerce FCU has some attractive rates. Membership is now open to all per Deposit Accounts. 12-23 month CD's at 2.12 percent. 48 month at 2.99.
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Has anyone opened an account with this institution for these rates?

Or have had accounts with them in the past?
So it doesn't appear too many takers with this credit union.

People seem happy if they get .70% from more well-known online banks.

Currently Department of Commerce FCU is offering 1.3% for 6-11 months and 1.88% for 12-24 months and 2.4% for 24-35 months.
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Old 05-18-2022, 06:30 PM   #457
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PenFeds 5 Year CDs are 3%.... Wait till July, then they will be increased I am sure.
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Old 05-18-2022, 07:04 PM   #458
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PenFeds 5 Year CDs are 3%.... Wait till July, then they will be increased I am sure.

I bought some 2 year treasuries 2.7%
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Old 05-18-2022, 07:40 PM   #459
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PenFeds 5 Year CDs are 3%.... Wait till July, then they will be increased I am sure.
I'm seeing PenFed's 5 year CD is 2.75%, the 7 year is 3%.
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Old 05-18-2022, 07:55 PM   #460
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Thanks for the answers.



How do you tell if you're buying at auction vs. secondary market?



Are there fees for purchasing through the secondary market?

Auction bills are found by clicking New Issues. You can sign up at Treasury Direct for notifications.

Secondary market treasuries will be listed under Bonds. They have a grid with the type of bonds, time till maturity and approximate interest rates. They make their money from a spread. You can call the bond desk for help if you’re unsure how to proceed.
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