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. http://www.treasurydirect.gov/RI/OFNtebnd 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.
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?
because they tell you the price the auctions went off at http://www.treasurydirect.gov/RI/OFNtebnd you didnt realy answer my question about the bonds being seperate or considered one....
Martinghoul answer is perfectly correct http://www.treasurydirect.gov/instit/marketables/tbonds/tbonds.htm 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 http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=OTEyODI4Tkg5 the par is $1, with $100 minimum size
what are you talking about? how am i placing an order significantly lower than the acution price? I just said this: http://www.treasurydirect.gov/RI/OFNtebnd 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.
did you read the links? it will be 10000 bonds since par value for this particular security is 1 dollar. minimum size is 100