Are T-bills for futures margin available again?

[J.P.]

Now that interest rates are going back up, are there currently any futures brokers accommodating T-bills for margin like they used to for high-balance accounts?

 

[Robert Morse]

We do.

 

[Robert Morse]

paying T-bill-like rates on credit balances.

That is highly unlikely. I have a few accounts outside Wedbush at ADMIS,. They don't want t-bills but will pay a low rate to larger accounts. Not 1 Year rate. Much less.

 

[truetype]

Depends on what "much less" means. I think ~⅔ of FF is easily available. A big improvement from 0 a couple years ago.

 

[rallymode]

Now that interest rates are going back up, are there currently any futures brokers accommodating T-bills for margin like they used to for high-balance accounts?

RJO and advantage currently offer this.

 

[RosyScenario]

We do.

OK. What would be the net APR of a 30-day T-bill after paying the commissions that I'm guessing are charged for purchasing? Can we get the specifics on this please?

 

[Robert Morse]

All I can tell you is I send in the request to buy $250,000 face value 1 year T-Bills. Wedbush charges $50/order. They come back with the discounted rate that the desk bought it for. Wedbush Futures keeps the T-Bill at cost on the books and it is margined at 95%.

 

[truetype]

Is 1 year the longest tenor you'll accept? Or will you take 2, 5, 10 year paper with a haircut?

As to Rosy's question, these are current Treasury yields--

1M 3M 1Y 2Y 3Y 5Y 10Y 30Y
1.401 1.470 1.888 2.159 2.315 2.555 2.764 2.996

 

[J.P.]

RJO and advantage currently offer this.

Thank you. Looks like you would need to pay higher commissions than you would otherwise pay at discount firms like AMP to get access to T-bills.

 

[J.P.]

All I can tell you is I send in the request to buy $250,000 face value 1 year T-Bills. Wedbush charges $50/order. They come back with the discounted rate that the desk bought it for. Wedbush Futures keeps the T-Bill at cost on the books and it is margined at 95%.

Do you offer 1-month and 3-month T-bills or only 1-year?