I am buying 52 week t-bills with one rollover through Treasury Direct. Being OID interest based, when I reinvest, will I be investing the full maturity t-bill value in my reinvested t-bill or will I buy the same denomination as the maturing t-bill with the earned interest going to my linked bank account?
My experience is with 4 week and 13 week products on treasury direct.
When I purchase let's say $5,000 worth of 4 week tbills, the treasury pulls $4980.03 from my bank account. The $19.97 delta is the interest I will earn. If I didn't reinvest I would get $5,000 back in my bank account in 4 weeks.
But because I am reinvesting, in 4 weeks they put let's say $19.42 into my bank account. That represents the interest I would have earned in next 4 weeks. The number changed because the interest rate changed.