Treasury Bill rates

[Kirk W]

Daily Treasury Bill Rates: These rates are the daily secondary market quotations on the most recently auctioned Treasury Bills for each maturity tranche (4-week, 8-week, 13-week, 17-week, 26-week, and 52-week) for which Treasury currently issues new bills. Market quotations are obtained at approximately 3:30 PM each business day by the Federal Reserve Bank of New York. The Bank Discount rate is the rate at which a bill is quoted in the secondary market and is based on the par value, amount of the discount and a 360-day year. The Coupon Equivalent, also called the Bond Equivalent, or the Investment Yield, is the bill's yield based on the purchase price, discount, and a 365- or 366-day year. The Coupon Equivalent can be used to compare the yield on a discount bill to the yield on a nominal coupon security that pays semiannual interest with the same maturity date.

Monday Feb 13, 2023

                               4 weeks       8 Weeks        13 weeks    17 weeks     26 weeks

02/13/2023

4.53

~

4.62

~

4.68

~

4.73

~

4.84

Does anyone here use Treasury Direct to purchase T-bills without going through a brokerage firm?

Edited February 14, 2023 by Kirk W

[justRich]

No, mostly because I don't understand IF there is an advantage.  Especially if one holds until maturity.  6,9 and 12 month Tbills at Schwab are at 5% (+).  Is there an advantage to using Treasury Direct?  What would the advantage be?

 

[Kirk W]

3 hours ago, justRich said:

Is there an advantage to using Treasury Direct?

The only thing that I can think of is that there is usually some sort of fee by a broker but I haven't used it either. I have been toying with it but the last T-bills that I bought was $10k worth and the fee was less than $10. That is probably because I went through the people who do my managed investment funds. We always keep about a month's expenses worth of money in cash and another six months or so worth in liquid assets like CD's or T-bills.  

Edited February 16, 2023 by Kirk W

[justRich]

To my knowledge, there was no fee at Schwab.  But then my purchase was far more than 10K.  Management companies often use Schwab or others to make purchases from brokers.  AUM (Assets Under Management) have a fee but CD's and Tbills are not included in AUM to my knowledge.  Thus, probably, the $10 charge is a handling fee which could be expected from hired management.  

 

[Kirk W]

1 hour ago, justRich said:

Thus, probably, the $10 charge is a handling fee which could be expected from hired management.  

The T-bills and CDs are not part of my managed funds but in a separate brokerage account. 

[RV_]

1 hour ago, justRich said:

To my knowledge, there was no fee at Schwab.  But then my purchase was far more than 10K.  Management companies often use Schwab or others to make purchases from brokers.  AUM (Assets Under Management) have a fee but CD's and Tbills are not included in AUM to my knowledge.  Thus, probably, the $10 charge is a handling fee which could be expected from hired management.  

 

Rich,

I am with Schwab too and there are no charges for making trades on listed stocks. But there is a $25 service charge for each T-Bill purchase.

[justRich]

13 hours ago, RV_ said:

Rich,

I am with Schwab too and there are no charges for making trades on listed stocks. But there is a $25 service charge for each T-Bill purchase.

That's for broker assisted purchases.  "0" for on line trades.

 

[RV_]

Rich,

You are right but you knew that.

Thanks I stand corrected. I called Schwab voice before I posted here that they have a service charge, and talked to Zack there yesterday, a Schwab representative to check that because I saw it both ways online. He said there was a $25 charge. I told him I was about to post and needed the right info. I have the time - I am re-tired after all. He gave me bad info.

I called back and asked for a supervisor who said he was wrong, unassisted online id free of charge as you said.

Thanks.

On edit: I got a call back from the supervisor who made me happy with Schwab again.

 

 

 

 

Edited February 19, 2023 by RV_

[justRich]

Well then the $10 fee Kirk mentioned is a good deal if he's not having to do it himself.