Buying Bonds From Treasury Direct

Discussion in 'Trading' started by yarray, Jun 8, 2010.

  1. yarray


    A few Questions

    Say for example you buy a 30 year from a scheduled auction via treasury direct, and you spend $10,000. Would that be considered a $10,000 bond? or would it be 100 $100 bonds? Basically are 30 year bonds only sold in $100 increments?

    Im just interested in the perspective that you can enter a bid with treasury direct for a 30 year auction and get a price that is much lower then the secondary market price.

    There is a 45 day holding period for all securities after auction purchases.

    Also to sell a security thru their selldirect program it costs $45 per security, which is the reason im asking the above question about larger denomination bonds. Because selling 100 $100 bonds with a fee of $45 is funny.
  2. You'll be buying $10k worth of bonds. They don't have to come necessarily in $100 pieces and keep in mind that you won't be getting exactly $10k notional value of these. Moreover, why do you think you'll get a much lower price than the secondary mkt?
  3. yarray


  4. Bob111


    Martinghoul answer is perfectly correct

    Minimum purchase: $100
    Maximum purchase: Non-competitive: $5 million
    Competitive: 35% of offering amount
    (see types of bidding)
    Investment Increment: Multiples of $100

    i think this is exactly what you are trying to do

    by placing your order significantly lower than auction price. do you seriously expect to get filled?

    note-price per $100

    the par is $1, with $100 minimum size
  5. yarray


    what are you talking about? how am i placing an order significantly lower than the acution price? I just said this:

    shows the price the auctions go off at, and that would be the price i would be paying.

    the question still has not been answered, if you purchase $10,000 worth of $10,000 bonds, reguardless of what price you end up paying for them at the auction. Will that be considered 1 bond or multiple bonds.
  6. Just curious, why does it matter to you?
  7. Bob111


    did you read the links? it will be 10000 bonds since par value for this particular security is 1 dollar. minimum size is 100
  8. yarray


    Just curious, why does it matter to you?
  9. Buzzed


    It doesn't matter to Chelsea_FC. She is just curious like she said.

    Carry on folks.