Buying Bonds From Treasury Direct

[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.

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.

 

[Martinghoul]

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?

 

[yarray]

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....

 

[Bob111]

Quote from yarray:

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

furthermore why does every single question asked on these forums have to end in someone trying to outsmart someone else?

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?

because they tell you the price the auctions went off at

note-price per $100

http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=OTEyODI4Tkg5

the par is $1, with $100 minimum size

 

[yarray]

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

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.

 

[Chelsea_FC]

Quote from yarray:

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.

Just curious, why does it matter to you?

 

[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

 

[yarray]

Quote from Chelsea_FC:

Just curious, why does it matter to you?

Just curious, why does it matter to you?

 

[Buzzed]

Quote from yarray:

Quote from Chelsea_FC:

Just curious, why does it matter to you?

Just curious, why does it matter to you?

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

Carry on folks.