Does anyone have a TreasuryDirect account and use IB? I'm interested in opening a TreasuryDirect account and laddering some notes etc... From reading the website, it seems that selling prior to maturity is done on the secondary market and the instruments need to be transferred to a broker. I'm a long time IB customer and it seems that they handle trading of bonds, but I was wondering if anyone has ever done this with them? I'm torn between dealing it all through IB - in a separate account vs. in a TreasuryDirect account. I also wouldn't mind buying on the secondary market when the interest rate suits me, as opposed to waiting for the next auction.
I found this online: Various instruments sold by the US Treasury are also available for purchase by a non-resident alien (NRA). NRAs can buy, hold, and sell normal Treasury instruments through the TreasuryDirect program, and will not be charged any tax as long as they file a Form W-8BEN. However, the NRA must first get an individual tax identification number (ITIN) by submitting a Form W-7, which is required for opening a TreasuryDirect account. Second, the account holder should really have an account at a US bank to allow for direct payment of purchases and direct credit of interest and sales proceeds. Finally, note that US Savings Bonds are not available to NRAs. http://www.invest-faq.com/articles/trade-non-us-nat.html It looks to me like it would be easier (and probably cheaper) for the OP to buy through IBKR or a bank. But it's my understanding that IBKR pays daily interest on cash balances, so it would seem that the difference between that and T-Bill interest would be peanuts. Cash doesn't have much time value these days.
if I got this right, T Bill is practically cash in this period. They are margin-able at 95% but the interest that you get is too low and does not cover the loan that you have to take in IB...