Compared to Treasury Direct - no, you are getting exactly the same auction prices plus the auto roll option. Fidelity is buying them for you at each auction and not charging extra. These are at a set time and day each week.
You can see upcoming auctions and results here: https://www.treasurydirect.gov/instit/instit.htm?upcoming
On the secondary market, any Fidelity commission or fees is part of the buy/sell spread and they trade continually during regular bond market hours.
The spreads are very small to buy in the secondary market. Would much rather have it in a brokerage over Treasury Direct.
Yes, at original issuance. Notes and Bonds can be approaching maturity and be under one year.And just to clarify, anything 1 year or shorter is a Treasury Bill, I think 2 to 10 years maturity is a Note and anything longer is a Treasury Bond?
Is there an advantage to a Treasury Bill, over say a 1 yr CD at 2.1%?
Thanks!
Thanks. Looks like its 2.04% V.S 2.1% today.
Basically the same rate.
Thought there may have been something I wasn't aware of.
Thanks again
I just canceled all my Ally No Penalty CDs at .55% and reopened them at .70%. Takes a second.
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?
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.
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?
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.
explanade; said: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.
Beats the 0.6% it was earning there.
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.Funny, just as I read your post I got an email from Marcus saying they are bumping my rate to .7%