What kind of payments are accepted for the initial purchase of United States Treasury securities ? (not be to confused with trading done on the secondary market) When a normal person is purchasing securities they are typically doing so within the money supply as effected by fractional reserve banking and The Fed. (eg. NOT M0) Does the initial purchase require physical cash, coin, gold certificates, etc or is it done the same way as normal people would do a bank transfer or any other payment ?

  • Confused as to how this relates to the The Fed and money supply. Are you aware of treasurydirect.gov which allows for retail purchase of various US Treasury products Mar 10, 2020 at 21:22
  • When the federal reserve makes requests for additional currency to the treasury they must hold 100% of the face value of the currency in collateral. The main approved collateral used is US treasury securities. I thought there would be some restrictions in place as a result, but there are not. Thus changes in the federal funds rate or reserve requirements can lead to the purchase of more treasury securities which can lead to the increase in M0. Mar 10, 2020 at 21:44
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    Can you explain the connection to personal finance? Mar 10, 2020 at 21:54

1 Answer 1


There is no restrictions for payment methods individual or institutional investors at US Treasury Security Auctions.


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