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treasury bond future confusion

I'm not really understand how treasury bond futures work. Take the 10-Year T-Note Futures. Currently, it lists that the June 2024 one is settling for $109,000 (and each T-Note has a face value of $...
APerson's user avatar
  • 89
0 votes
0 answers
40 views

Simple YTM calculation

I'm working the following problem, but getting the wrong answer. Any feedback appreciated. Suppose you bought a five-year zero-coupon Treasury bond for $800 per $1000 face value. Assume the yield to ...
Hank's user avatar
  • 1
1 vote
2 answers
109 views

Why people are contrary to the cancellation of treasury shares with no reduction of share capital?

In a share buyback, the company buys its own share for example in the open market. The bought shares can be retired or kept as treasury stock (reference). One such operation was carried out by ...
robertspierre's user avatar
1 vote
1 answer
84 views

Clarification on the 6-Month Yield Point on the US Treasury Yield Curve

Can the 6-month yield point on the US Treasury Yield Curve represent yields from securities originally issued with longer maturities (e.g., 1 year) but now have only 6 months left until maturity? ..Or ...
StatsScared's user avatar
-4 votes
2 answers
194 views

Unintentionally bought 10kUSD of I bonds with a few cents: how can I correct my mistake and properly purchase 10kUSD of I bonds?

I bought 10kUSD of I bonds via treasurydirect.gov. The bank account I mistakenly used to purchase the bonds only had a few cents. To my surprise, my account on treasurydirect.gov indicates that the I ...
Franck Dernoncourt's user avatar
0 votes
2 answers
78 views

Price for a bond that was issued in the past?

I understand that for US treasury bonds, that the price, its current yield and annual coupon is related by price = coupon/yield. But the prices and yields when I look them up online are always denoted ...
Mikkel Rev's user avatar
2 votes
1 answer
104 views

How to capture Treasury T-Bill reinvestment activity in GNUCash

I use GNUCash, I like it a lot. Double-entry is awesome but sometimes it's difficult to determine the "right way" to record something. I've recently started investing in some T-Bills and I'm ...
Greg G.'s user avatar
  • 61
3 votes
2 answers
207 views

Does the capital gains tax apply this tax year or next if I initiated a sale today but it won't complete until the new year?

I have tried several Google and Stack Exchange searches, and I tried looking through the IRS website, but I haven't found anything that answers my specific question. I may have made a mistake. Last ...
CPomerantz's user avatar
1 vote
1 answer
175 views

Can F1 Student Resident Alien Buy From Treasury Direct?

I've been in the United States for 10 Years now on F1 VISA. I've filed taxes and got a SSN 5 years ago. I have a drivers license and an EAD. I'm a resident alien for tax purposes. Can I open an ...
Terry W's user avatar
  • 11
1 vote
1 answer
148 views

Why MBS has lower YTM than treasury bonds?

I just checked, VMBS (Vanguard MBS) has yield of 3.73%, but VGLT (Vanguard government long term bond) has yield of 5.08%. I thought MBS is riskier and would require higher YTM by the market.
ZEWEI CHU's user avatar
  • 111
4 votes
1 answer
481 views

Are there any benefits to purchasing T-bills directly from TreasuryDirect?

I have been purchasing T-bills from TreasuryDirect, but I recently realized that I can also purchase new issue T-bills from Fidelity. The UX is better and when the money is between bond auctions, it ...
JobHunter69's user avatar
1 vote
1 answer
106 views

Tbill Rollover Interest

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 ...
Kevin Spalding's user avatar
1 vote
1 answer
1k views

How do I calculate the interest rate on my Treasury bill given an evaluated price?

Ex: I'm looking at the 3 month (13-week) Treasury bill here, maturing 11/16/2023. The evaluated price is 98.617417. So is the interest rate: (100 - 98.617417)/98.617417 * (365/(13 * 7)) * 100 = 5....
JJ S's user avatar
  • 11
3 votes
1 answer
2k views

How can the purchase cost of a treasury bill be more than its face value?

I'm considering (non-competitively) purchasing a 52-week Treasury bill through Treasury Direct. As I understand, the purchase price is reduced by the discount rate and therefore is always less than ...
josh's user avatar
  • 153
2 votes
1 answer
637 views

Do I have to wait until a Treasury Bill auction date to buy a 52-week non-competitive bill, and will reinvesting give me the same rate a year later?

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 ...
josh's user avatar
  • 153
3 votes
1 answer
283 views

US Treasuries, explanation of numbers listed in IBKR

I've been recently reading about treasuries and trying to understand how they work. In particular, within IBKR I can search for US treasuries and get the numbers listed in the screenshot. What I've ...
Tsaras's user avatar
  • 133
0 votes
1 answer
97 views

What does the Bloomberg US Treasury Long Term TR index measure?

I have purchased shares of a bond ETF, ticker symbol: SPTL (SPDR Portfolio Long-Term Treasury ETF). The prospectus states: "the fund's goal is to track the total return of an index that measures ...
domino's user avatar
  • 595
0 votes
1 answer
125 views

Is it worth it to diversify the "risk-free" portion of a portfolio across multiple assets?

I am looking into the constructing of my own sort of "structured product" and have been thinking about the risk profiles of the "risk-free" portion of products like this. Generally,...
QMath's user avatar
  • 103
-4 votes
1 answer
208 views

What does the EE stand for in EE bonds?

I wonder what the letters "EE" represent in "EE bonds", i.e. whether it's an acronym and if so, what the full form of the EE acronym? I searched quite a bit and couldn't find the ...
Franck Dernoncourt's user avatar
-4 votes
2 answers
396 views

Why aren't Treasury bill auction reopenings marked as reopenings on the Treasury Auction Schedule?

Let's consider on the 13-week bill whose auction date is Monday, March 13, 2023 on Treasury Tentative Auction Schedule. It's not marked as a reopening on the Treasury Tentative Auction Schedule (no R ...
Franck Dernoncourt's user avatar
-6 votes
1 answer
144 views

What part of the auction process for U.S. Treasuries makes it impossible to enroll in the auto-rollover feature after the initial order entry?

When trying to activate auto-rollover for an already purchased Treasury security on Schwab, I get the message: This security is ineligible for auto-rollover. Due to the nature of the auction process ...
Franck Dernoncourt's user avatar
24 votes
3 answers
6k views

If US Treasuries at yielding 4-5% right now, why can't I find an ETF that yields that amount?

If US Treasuries at yielding 4-5% right now, why can't I find a 1 month US Bond ETF or 6 month US Bond ETF that yields 4-5%? The best I can find is SGOV but it only yields 2%. Picture of US yields on ...
Katsu's user avatar
  • 525
-1 votes
1 answer
580 views

What are the pros and cons, if any, of purchasing Treasury securities at a reopened auction (vs. a new, non-reopened auction)?

I read on treasurydirect.gov: When we hold a reopening auction, we are selling additional amounts of a previously issued security. This is reflected in the Tentative-Auction-Schedule.pdf. What are ...
Franck Dernoncourt's user avatar
-4 votes
1 answer
108 views

Is it financially preferable to purchase Treasury bonds on the primary market or on the secondary market? [duplicate]

Assume a retail investor who: can purchase Treasury bonds on the secondary market through their broker without any fees or markups (e.g., via Charles Schwab). can only submit non-competitive bids ...
Franck Dernoncourt's user avatar
0 votes
1 answer
149 views

Where can I find the indicative yield of soon-to-be-issued Treasury bonds on Charles Schwab?

In Vanguard, one may see the indicative yield of soon-to-be-issued Treasury bonds on https://personal.vanguard.com/us/FixedIncomeTrading: Where can I find the indicative yield for soon-to-be-issued ...
Franck Dernoncourt's user avatar
-4 votes
1 answer
94 views

Why does buying Treasury bonds on the secondary market make it easier to sell Treasury bonds at a later date?

I read: Buying on the secondary market also makes it easier to sell Treasury bonds at a later date. Why does buying Treasury bonds on the secondary market make it easier to sell Treasury bonds at a ...
Franck Dernoncourt's user avatar
1 vote
2 answers
222 views

Why wouldn't a broker let a retail investor choose the order type when purchasing Treasury bills via auctions?

When purchasing US Treasury bills via auctions with Charles Schwab, one cannot choose the order type: it has to be a market order, as shown below. As a result, one receives the following warning: ...
Franck Dernoncourt's user avatar
1 vote
1 answer
184 views

How shall one take into account the accrued interest when purchasing a bond on the secondary market?

For example, I'm looking at the following US Treasury bonds ordered by decreasing yield to maturity (YTM) on Charles Schwab: If I simply want to maximize the returns, assuming no default risk, should ...
Franck Dernoncourt's user avatar
1 vote
1 answer
150 views

What accounts for the difference in yield to maturity (YTM) between brokered CDs and US Treasuries?

Looking at the Charles Schwab table below dated 2023-02-24 on the yield to maturity (YTM) for different brokered CDs and bonds, I see that for when the maturity is 1 year or higher, brokered CDs have ...
Franck Dernoncourt's user avatar
2 votes
2 answers
182 views

How do I buy US Treasury bills?

How does one usually buy Treasury Bills? I see there is both the Treasury website and secondary markets. Apparently, the rates are different in each? I‘m a total newbie here, so could someone walk me ...
desert_ranger's user avatar
4 votes
1 answer
312 views

How to report losses on Treasury Bill sales?

I have an account at Fidelity. Last year I sold some Treasury Bills before they matured. Some of the sales were gains and others were losses. When I got my Fidelity tax package, it showed the gains as ...
sam's user avatar
  • 141
5 votes
2 answers
2k views

Financing kids' college with bonds

The rates of treasuries went up in the US. I would like to save for college for my children so I know that in 10 years when they need to pay for college I will have the funds. Could I buy 10 year ...
Medan's user avatar
  • 553
4 votes
1 answer
405 views

TreasuryDirect.Gov Tax Withholding

Anyone know where in treasurydirect.gov website we setup tax withholding for interest accrued owning T-Bills and Notes?
Chirag Shah's user avatar
3 votes
1 answer
605 views

How do I determine Interest Rate of 4-Week Treasury Bill

I purchased 4 week treasury bill for $2220 Treasury will take out $2212.4545 from my Bank account Treasury says Investment rate = 4.446% and High rate = 4.370% But I calculate interest rate as 4.43361%...
Marium's user avatar
  • 373
2 votes
0 answers
193 views

The interest rate of a (U.S. Treasury) "Floating Rate Note" (FRN)

I am having trouble to reproduce the calculation of the interest rate of a (U.S. Treasury) "Floating Rate Note" (FRN). Can you help me to find my error? The calculation is described here: ...
311411's user avatar
  • 245
3 votes
1 answer
829 views

Treasury Yields -- Quoted on an Investment Basis vs. Discount Basis

I'm looking at the St. Louis Fed website's historical data for the 1-year treasury. There are two different but similar pages. One is titled: 1-Year Treasury Bill Secondary Market Rate, Discount Basis ...
PintoBox's user avatar
1 vote
1 answer
253 views

Calculation for current value of Ibond in TreasuryDirect

I have purchased I bond from TreasuryDirect in the amount of $10K in 8/2021 and 1/2022, totaling $20K. Currently, TreasuryDirect shows the interest rate of 9.62% for my 8/2021 purchase and 6.48% for ...
HelloDarkWorld's user avatar
1 vote
1 answer
132 views

Invest in treasury bonds or pay off loan?

I have about $5000 coming in from a stock sale (ESPP). My plan with it was to invest in treasury bonds (I), since the rate is really good right now (~6.69%). It changes every 6 months (https://www....
Is It Me's user avatar
  • 189
5 votes
2 answers
1k views

Why is there a discrepancy between current inflation rate and I bond rate in the US?

According to https://www.rateinflation.com/inflation-rate/usa-inflation-rate/, the November 2022 inflation rate is 7.11%, but the I Bond rate according to Treasury Direct is 6.89% (from November 2022 ...
HelloDarkWorld's user avatar
1 vote
1 answer
44 views

T-bills yield is the lower bound for the return?

When I look at the US treasury rates I see a number say 4%. That means if I buy 12m note today I will get 4% interest in 12M. This will be my return. What if the rates went down and as a result the ...
Medan's user avatar
  • 553
1 vote
1 answer
165 views

Why did SHY ETF only drop 5% YTD but IEF dropped 15% when yield curve is inverted

I don't understand the pricing of these two ETFs. I understand the effect of duration risk, thus, making IEF more volatile but this explanation would contradict with the inverting yield curve. In ...
Kaguya Ōtsutsuki's user avatar
7 votes
6 answers
1k views

safe investment for maintaining purchasing power

I have $100,000. I am going to need the money over the next year. I want to protect its purchasing power relative to inflation and also have some reasonable low risk return. What would be a good ...
JJJ's user avatar
  • 79
12 votes
4 answers
4k views

Why would someone buy bonds with yields comparable to US Treasury bonds?

Fidelity is showing the following chart for current bond yield rates: For 1-year bonds, US treasure currently offers a 1-year yield of 4.62% which is above or comparable to: Corporate AAA/AA bonds: ...
JonathanReez's user avatar
  • 5,862
5 votes
1 answer
223 views

How to determine what would be considered a good rate for 4-52 week Treasury bills?

According to the information provided by treasurydirect.gov, currently the rates for any Treasury bill ranging from 4-52 weeks are all above 4% (expressed yearly). Looking at the 10 year/3month ...
John H.'s user avatar
  • 85
3 votes
1 answer
146 views

Possible discrepancy between TreasuryDirect.gov Treasury Bill Investment Rate and Self-Calculated Interest Rate

I bought a 17 week treasury bill ending in Z93 as shown in the screenshot above. I placed 20,000 and after the discount rate, I paid 19707.13 for the treasury bill. According to the screenshot, the ...
John H.'s user avatar
  • 85
3 votes
0 answers
119 views

Do I have to report my T-Bills on taxes if they haven't yet been matured?

Do I have to report on taxes for 2022 year my 4 week T-bill if I buy them on Dec 6, 2022 (Maturity date Jan 3, 2023)?
Dzianis Sudas's user avatar
8 votes
1 answer
1k views

TreasuryDirect.gov not showing monthly interest gained on an I bond

I bought an I bond on treasurydirect.gov and it was filled on 10/1/2022 (more than 1 month ago at the time of writing). My understanding is that I bonds accrue interest monthly but when I login now it ...
sedavidw's user avatar
  • 249
1 vote
1 answer
83 views

Yield curve to price bonds

I am having a hard time finding books/materials that would teach yield curve pricing using real-world problems/examples I would like to understand if can I use the below treasury yield data (I believe ...
Skittles's user avatar
4 votes
2 answers
201 views

1 year CD or 1 year Treasury pros and cons

I was looking at treasury rate and CD rates . And It looks like Treasury rate is higher than CD . And with my own experience it is easy to buy either CD or Treasury. So My question why people buy CD ...
puzzled's user avatar
  • 1,016
3 votes
1 answer
85 views

How can I claim tax credit for a bond that has been frozen?

I own a USD-denominated Venezuelan bond. It expired in 2020, but the US government froze payment so I did not receive my capital or the final coupon. The bond did not default. How can I claim tax ...
fernando's user avatar