FHLB Bonds vs Treasury Bill for Short Term Investment

[MercyMe]

I was planning to buy $100k in 9 month treasuries, but there are none available on the secondary market at this volume. The lowest is $350K.

However, there are FHLB bonds available with 9 months until maturity and with a yield comparable to treasuries. I believe FHLB bonds are basically taxed the same as treasuries (no state/local tax), and it seems like FHLB bonds are nearly as risk-free as Treasury bills.

Does it make sense to just use the FHLB bond instead of the treasury? I feel like I might be missing some important part of the puzzle.

 

[swk7907]

The best offer price is the one you're seeing with the 350k minimum. Look at the market depth and I'm sure you'll find a price with a minimum of 1 bond ($1,000). You give up a little in yield but it will be negligible. Agencies are definitely a possible alternative to treasuries but you don't need to select it just to get a lower minimum.

 

[MercyMe]

Ah, I see now. Thank you!