Treasury Bills, Notes, and Bonds Discussion

[audreyh1]

This week’s T-bill auction results:

Bills	CMB	CUSIP	Issue Date	High Rate	Investment Rate	Price per $100
4-Week	No	912797FQ5	05/30/2023	5.750%	5.872%	$99.552778
8-Week	No	912797FZ5	05/30/2023	5.350%	5.485%	$99.167778
13-Week	No	912796Z44	05/25/2023	5.250%	5.409%	$98.672917
17-Week	No	912797GU5	05/30/2023	5.260%	5.442%	$98.261278
26-Week	No	912797FL6	05/25/2023	5.170%	5.398%	$97.371917

[Another Reader]

Quote:

Originally Posted by audreyh1 This week’s T-bill auction results: Bills CMB CUSIP Issue Date High Rate Investment Rate Price per $100 4-Week No 912797FQ5 05/30/2023 5.750% 5.872% $99.552778 8-Week No 912797FZ5 05/30/2023 5.350% 5.485% $99.167778 13-Week No 912796Z44 05/25/2023 5.250% 5.409% $98.672917 17-Week No 912797GU5 05/30/2023 5.260% 5.442% $98.261278 26-Week No 912797FL6 05/25/2023 5.170% 5.398% $97.371917

Love the rates but not the reason. Stretching the duration out, hoping the debt ceiling issue is resolved before I'm due payment.

[Kayzmum]

I don't like the reason T-bills have high interest right now, but I'll partake in the cookies while available. It matures on 6/15/23. Wish it was longer.

[Sunset]

Vanguard has shortened the time to today only for buying T-bills , probably due to holiday coming up ?

Has others done this as well ?

[audreyh1]

Quote:

Originally Posted by Sunset Vanguard has shortened the time to today only for buying T-bills , probably due to holiday coming up ? Has others done this as well ?

I doubt it. You can’t order over the weekend? I didn’t notice at Fidelity.

The auction has been moved to Tuesday due to the Federal holiday on Monday. Fidelity normally allows you to order announced T-bills through the weekend, holiday included.

[audreyh1]

Quote:

Originally Posted by Another Reader Love the rates but not the reason. Stretching the duration out, hoping the debt ceiling issue is resolved before I'm due payment.

To me with the exception of 4-week T-Bill, the remainder are simply back to where they would have been before our little bank crisis in March.

[Sunset]

Quote:

Originally Posted by audreyh1 I doubt it. You can’t order over the weekend? I didn’t notice at Fidelity. The auction has been moved to Tuesday due to the Federal holiday on Monday. Fidelity normally allows you to order announced T-bills through the weekend, holiday included.

This is what Vanguard posted when going to order interest bearing items:

[audreyh1]

Wow, weird! Not even tomorrow?!?

[Kayzmum]

Quote:

Originally Posted by Sunset This is what Vanguard posted when going to order interest bearing items:

I bought a treasury bill today on Vanguard.

[Sunset]

Quote:

Originally Posted by Kayzmum I bought a treasury bill today on Vanguard.

Yes, today is fine until 5pm.

I have one coming due today, it probably pays out at the end of the day ?
I was going to "roll it over" to a 6 month one.

It had not cashed out at nearly 2pm. Normally no issue, I would buy the 6 month on Friday, which was my plan.

Now I'll have to wait, at least the vanguard cash account pays ~5%

[audreyh1]

The settlement date is not until next week, so can’t you order it today?

What a pain. Fidelity shows the funds available for trading first thing on a T-Bill maturity date. And even then you have until the settlement date to actually pay for it.

[grasshopper]

Quote:

Originally Posted by Sunset Yes, today is fine until 5pm. I have one coming due today, it probably pays out at the end of the day ? I was going to "roll it over" to a 6 month one. It had not cashed out at nearly 2pm. Normally no issue, I would buy the 6 month on Friday, which was my plan. Now I'll have to wait, at least the vanguard cash account pays ~5%

I bought the 6 month 11 am AZ time. I have a redemption due today, and settlement isn't until June 1, So I figure I am good to go.

[calmloki]

Kinda grumpy here. We have a 26 week Treasury that matures and settles next Thursday; my plan was to roll it over with a buy order this weekend that would settle Thursday as well. But VG shut down the auction sales yesterday. Any notion what the thinking was there? Gummint doesn't want to buy more debt without being able to go further in debt without the debt ceiling being raised? Why have the auction at all then? Or was this an action all the brokerages took, and why?

[audreyh1]

Quote:

Originally Posted by calmloki Kinda grumpy here. We have a 26 week Treasury that matures and settles next Thursday; my plan was to roll it over with a buy order this weekend that would settle Thursday as well. But VG shut down the auction sales yesterday. Any notion what the thinking was there? Gummint doesn't want to buy more debt without being able to go further in debt without the debt ceiling being raised? Why have the auction at all then? Or was this an action all the brokerages took, and why?

Yes, that is extremely bizarre. Only Vanguard AFAIK.

And Vanguard didn’t prevent folks from placing orders yesterday before 5pm, so it’s not consistent either.

The auctions are ongoing.

[Sunset]

Quote:

Originally Posted by audreyh1 Yes, that is extremely bizarre. Only Vanguard AFAIK. And Vanguard didn’t prevent folks from placing orders yesterday before 5pm, so it’s not consistent either. The auctions are ongoing.

I was trying to buy treasuries for someone on Chase brokerage and it listed none as available to buy today.

Very annoying and weird.

[JoeWras]

VG also shuts down all fixed income activity every day from about 4:30am to 6:30am. That's when I get a lot done.

It is one of many reasons I'm moving half of our holdings to Fidelity.

[Marc]

Question about impact of debt ceiling increase:

Come 5 June, after debt ceiling increase is signed, won't Treasury need to "unwind" all of the "extraordinary measures" that have been used for a number of months? Won't that lead to a large influx of new Treasury bills, notes, and bonds? Won't that cause supply to increase and price to decrease and yield to increase? I have a lot of money still in MM (at 4.91%) that could be moved to bills 26 weeks and shorter; just wondering if I should make the effort.

thanks,

Marc

[Sunset]

Quote:

Originally Posted by Marc ........ I have a lot of money still in MM (at 4.91%) that could be moved to bills 26 weeks and shorter; just wondering if I should make the effort. ...

If I had a lot of $$ in MM , I'd be putting it in Treasuries as they are paying more.
If you put it in 4wk, 8wk, 13wk, 26 wk, equal amounts, you have some coming due fairly regularly.
When something comes due and you don't need it, just buy another 26wk.

[Marc]

Quote:

Originally Posted by Sunset If I had a lot of $$ in MM , I'd be putting it in Treasuries as they are paying more. If you put it in 4wk, 8wk, 13wk, 26 wk, equal amounts, you have some coming due fairly regularly. When something comes due and you don't need it, just buy another 26wk.

I purchased 8 week issue date of 5/16 and rate was only 4.793%; I really don't want that to happen again. Still, you are probably right.

[calmloki]

Heads up - VG allowed me to purchase a 26 week bond this morning, 5/28.