Treasury Bill rates

Kirk W · February 14

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 by Kirk W

justRich · February 16

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 · February 16

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 by Kirk W

justRich · February 17

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 · February 17

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_ · February 17

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 · February 17

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_ · February 17

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 by RV_