Buying New Issue US Treasuries

You can sign up on Treasury Direct and buy without fees. Your bond can then be transferred into IB...

...for a feeeeeeeeeeeeee.
 
Yeh, I can already earn around 1.91% (currently) on cash held in my IB account, but I can buy treasuries that expire 4/30 that yield around 2.38% last time I checked in their secondary market. But then there are some fees that reduce the yield a bit. Since I have money that I know I won't use during that time frame, I'd like to squeeze out a little more risk-free yield. But I want to keep my money in my IB account for flexibility and not move it around between multiple accounts.
 
ET180 said:
Yeh, I can already earn around 1.91% (currently) on cash held in my IB account, but I can buy treasuries that expire 4/30 that yield around 2.38% last time I checked in their secondary market. But then there are some fees that reduce the yield a bit. Since I have money that I know I won't use during that time frame, I'd like to squeeze out a little more risk-free yield. But I want to keep my money in my IB account for flexibility and not move it around between multiple accounts.
More...
Grow a pair and go all-in on a Brexit play. Every penny into Gold futures!
 
There is another way to basically capture the fed funds rate -- buy 100 SPY, sell 1 ATM call, buy 1 ATM put. Go at least a month or two out in expiration. After commissions, you'll capture about 2.3% annual yield. Downside is that the premium captured is subject to state tax exemption unlike treasuries. Treasury yield is also slightly higher.
 
You must log in or register to reply here.
Back
Top