DQOTD: Vanguard T-Bill "Auto Roll?"

Midpack

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I know you can't set up T-Bill auto roll on Vanguard, unlike some brokers, and I know this has been discussed before - but I am not finding a related thread.

I want to buy the 1-year T-Bill shown below. And I want to use funds from a T-Bill I have maturing on 1/23. In the past I've always waited a week or month, but I am reading on Bogleheads that some members there regularly do what amounts to a same day manual auto roll - buying a new T-Bill on the same day another matures. One post even said you can use 'unsettled funds' and they will show up as 'funds available' before settlement. I would wait and see but I assume I have to act on 1/23.

Anyone know for sure?
 

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Yes, if your redemption goes to your settlement fund, they will cross.
 
I have had different results when putting in orders to be paid with unsettled funds, from treasuries maturing after the auction cut off for placing the order, but before the payment (settlement) due date date. I have some which went through, and at least one that didn't. At one point in time I spoke to someone from that department (I don't recall if it was fixed income or bonds) and was told as long as funds came though prior to the settlement date I should be able to do it. With Schwab, IIRC it can mature the morning of the pay date. Vanguard's money usually takes a little longer to show. If you can't enter the order manually, CS may be able to do it for you, I would just confirm that they would not be charging me to do it.
 
I've done this a few times. So I'd have a CD or treasury in VG coming due, for instance 1/23, I can buy one today, if available. There've been times usually with CDs the settlement date is a week or more from the maturity of the treasury or CD, I bought the CD ahead of time. As long as it all washes on the date of maturity to the settlement date.
 
Can't speak for Vanguard, but at Fidelity I think I'd need to call the bond desk to make this happen. If I tried it online, I'd probably be told funds weren't available.

Maybe a phone call will do the trick?
 
Can't speak for Vanguard, but at Fidelity I think I'd need to call the bond desk to make this happen. If I tried it online, I'd probably be told funds weren't available.

Maybe a phone call will do the trick?
I’ve never done it online at Fidelity without having funds to cover in my higher yielding MM account, however I notice that the MM fund is never touched. The proceeds from the maturing bond go right to the new issue. Just like the autoroll works.
 
Can't speak for Vanguard, but at Fidelity I think I'd need to call the bond desk to make this happen. If I tried it online, I'd probably be told funds weren't available.

Maybe a phone call will do the trick?
Went to Fidelity fro VG because of auto roll. Then tried to buy a Fidelity T-bill on Monday which settled on Thursday with proceeds from another T-bill maturing on Thursday. didn't work. Was able to make it work by calling the bond desk, but Fidelity auto-roll is the painless way to go. Lesson learned.
 
OK, so the bond desk at Fidelity can do it for you. Good tip!

Also they’ve made it possible to cancel autoroll online now (until the Autoroll order is automatically placed). Before you had to call in to turn it off. Another trick is that for autoroll they place the order some time after the announcement - usually that evening or the next morning. And you can cancel the order then if you don’t want it.
 
Does VG allow you to place the order in advance of the funds? I tried to buy, for ex., 100 [face value] and had 96 in the account (because the interest estimate was going to be 4% so it would accrue to 100 [face value] in a year). VG kept saying there wasn't enough in the account so I could only buy 96. Rather frustrating. Now I need to go back for the next auction to buy more. Unless I'm just not doing it right?

If that didn't work for me, will VG allow you to place an order before the funds are there in the OP's post?
 
Does VG allow you to place the order in advance of the funds? I tried to buy, for ex., 100 [face value] and had 96 in the account (because the interest estimate was going to be 4% so it would accrue to 100 [face value] in a year). VG kept saying there wasn't enough in the account so I could only buy 96. Rather frustrating. Now I need to go back for the next auction to buy more. Unless I'm just not doing it right?

If that didn't work for me, will VG allow you to place an order before the funds are there in the OP's post?
Unless there are other assets in the account to satisfy the order, you’ll only be able to buy 96 face value even though it’ll cost just over 92. I’m sure VG is worried about or has been burned by members placing orders without properly calculating the amount needed. I called with the same question a while ago because I routinely buy 100 when I only have 96 in accounts that have other assets that could be used if I miscalculated.
 
Unless there are other assets in the account to satisfy the order, you’ll only be able to buy 96 face value even though it’ll cost just over 92. I’m sure VG is worried about or has been burned by members placing orders without properly calculating the amount needed. I called with the same question a while ago because I routinely buy 100 when I only have 96 in accounts that have other assets that could be used if I miscalculated.
To me, the odd thing is that you had to place your order in advance of the auction but it had a settlement date that was (I believe) two days later. I'd hoped to be able to top it off give the two days.

This is why I was wondering about whether you could actually place an order for the new bills as your account wouldn't be funded until the old ones had matured?
 
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