09-16-2018, 12:07 AM
Could you share your experience buying T-bills through Fidelity in the secondary market? There are a lot of data points and I want to understand what I should be looking out for. Looking to purchase $50K for 6 months.
is it better to purchase at the Treasury auction vs. secondary market. I wonder if it will make a big difference at these dollar amounts, given the efficiency of the bond market.
- My observation is that based on depth of book, generally it seems that the more you purchase the better is the interest rate.
- in the table below market price for a 25 lot bond is 99.570 but one can use limit price to try for a higher interest rate.
- Spread to Treasuries: given that this is 1/100th of a percentage point, this is not material at the $50K dollar amount?
Anything else I should look out for?
Thanks in advance.
is it better to purchase at the Treasury auction vs. secondary market. I wonder if it will make a big difference at these dollar amounts, given the efficiency of the bond market.
- My observation is that based on depth of book, generally it seems that the more you purchase the better is the interest rate.
- in the table below market price for a 25 lot bond is 99.570 but one can use limit price to try for a higher interest rate.
- Spread to Treasuries: given that this is 1/100th of a percentage point, this is not material at the $50K dollar amount?
Anything else I should look out for?
Thanks in advance.