2

I am considering purchasing through TreasuryDirect, a 52-week Treasury bill which is scheduled for auction Aug. 8th (2023). When can I actually submit my purchase? Should I wait until the latest in case there is a chance the auction rate can drop significantly lower than July auction rate at 5.4%?

Also, I'm considering re-investing it. Suppose the rate at the Aug. auction is set at say 5.2%. If I re-invest it another year, will it be so at the same 5.2% or will it be invested at the Aug, 2024 auction rate? The reason I ask is I suspect the rate will be significantly lower in 12 months.

1 Answer 1

2

First of all you need to make an account at treasury direct.

Then you need to hook that account to your bank account, so that when after the auction on August 8th they can pull the funds from your bank account on the 10th of August.

Don't wait too long to do this.

When can I actually submit my purchase?

As of today I can see 52 week bills for the early August and early September 2023 auctions. For the shorter term bills that are auctioned every week I can see out 8 weeks.

Should I wait until the latest in case there is a chance the auction rate can drop significantly lower than July auction rate at 5.4%?

If you know how much you want to invest, then it doesn't matter when you select the date and amount as long as you make the deadline. The rate is set during the auction on August 8th.

If I re-invest it another year, will it be so at the same 5.2% or will it be invested at the Aug, 2024 auction rate? The reason I ask is I suspect the rate will be significantly lower in 12 months.

The auction in August 2024 will set the rate. It could be lower or higher.

When you purchase the t-bill you can specify how many times you want to reinvest. The good news is that you can change your mind. There will be a lockout period just before the auction in August 2024, once you enter that lockout period you can't modify the option to reinvest.

2
  • Thanks for responding. I already have a TreasuryDirect account. So just to be clear, I would need to purchase the bills before the August 8th auction correct? Is that the deadline you're referring to?
    – josh
    Jul 29, 2023 at 19:11
  • Look around on the site. you can see the upcoming auctions. You can pick the one in early August. The money will be pulled from your bank account on the 10th once the price is determined on the 8th. Jul 29, 2023 at 19:20

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .