Purchased 13 week Treasuries got 1 year
- investorjon
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Purchased 13 week Treasuries got 1 year
On April 11, I purchased 13 week treasuries in my Roth and Trad IRA's using Vanguard. Looking at the transaction today, I see I got "U S TREASURY BILL CPN 0.00000 % MTD 2022-07-14 DTD 2021-07-15". I've sent a message to Vanguard to look into this but what should I do at this point?
Thanks,
Jon
Thanks,
Jon
- retired@50
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Re: Purchased 13 week Treasuries got 1 year
It appears to me the maturity date (assuming MTD means maturity date) is only 8 weeks away from today.investorjon wrote: ↑Thu May 19, 2022 10:14 am On April 11, I purchased 13 week treasuries in my Roth and Trad IRA's using Vanguard. Looking at the transaction today, I see I got "U S TREASURY BILL CPN 0.00000 % MTD 2022-07-14 DTD 2021-07-15". I've sent a message to Vanguard to look into this but what should I do at this point?
Thanks,
Jon
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Re: Purchased 13 week Treasuries got 1 year
Five weeks ago, you bought a Treasury with 13 weeks left until maturity. That it was originally a 52-week bill doesn't really mean anything.
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Re: Purchased 13 week Treasuries got 1 year
If you bought on April 11th and it matures 7/14, that's 94 days or just over 13 weeks. You didn't buy a tbill that was issued and matures in 13 weeks. You bought a 1 year treasury that matures in 13 weeks. For 0-coupons, they should be basically the same.
Re: Purchased 13 week Treasuries got 1 year
This bill matures on July 14, which is 13 weeks after April 11th.investorjon wrote: ↑Thu May 19, 2022 10:14 am On April 11, I purchased 13 week treasuries in my Roth and Trad IRA's using Vanguard. Looking at the transaction today, I see I got "U S TREASURY BILL CPN 0.00000 % MTD 2022-07-14 DTD 2021-07-15". I've sent a message to Vanguard to look into this but what should I do at this point?
I'm not sure what you would need to do except wait for the bill to mature.
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Re: Purchased 13 week Treasuries got 1 year
You bought a 52 week bill that matures in approximately 13 weeks from your purchase date. There's nothing wrong here unless you intended to buy a new issue bill for some reason. Treasuries are very liquid so I would have no concerns about getting a fair deal, probably very close to what a new issue would have gotten, possibly better.
Last edited by MrJedi on Thu May 19, 2022 11:17 am, edited 1 time in total.
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Re: Purchased 13 week Treasuries got 1 year
The auction of 13-week T-bills on 2022-04-11 was a reopening of 52-week T-bill originally auctioned 2021-07-15. In general, when the result of a Treasury auction is that the security being auction has the same maturity date and coupon rate as an existing security, the auction is treated as having been of more of the existing security rather than a new one.
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Re: Purchased 13 week Treasuries got 1 year
Look at the maturity as this is what matters; the original issue date of the treasury bill is besides the point. Vanguard is probably going to tell you exactly what people here are saying. It confused me the first time I bought a treasury bill, but I realized the maturity is still correct.investorjon wrote: ↑Thu May 19, 2022 10:14 am On April 11, I purchased 13 week treasuries in my Roth and Trad IRA's using Vanguard. Looking at the transaction today, I see I got "U S TREASURY BILL CPN 0.00000 % MTD 2022-07-14 DTD 2021-07-15". I've sent a message to Vanguard to look into this but what should I do at this point?
Thanks,
Jon
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Re: Purchased 13 week Treasuries got 1 year
This is good info. Learned something today.FactualFran wrote: ↑Thu May 19, 2022 11:10 am The auction of 13-week T-bills on 2022-04-11 was a reopening of 52-week T-bill originally auctioned 2021-07-15. In general, when the result of a Treasury auction is that the security being auction has the same maturity date and coupon rate as an existing security, the auction is treated as having been of more of the existing security rather than a new one.
- investorjon
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Re: Purchased 13 week Treasuries got 1 year
Thank you for this explanation. Can I assume the interest rate will be somewhere around the "indicative yield" that was stated when I purchased the bill?FactualFran wrote: ↑Thu May 19, 2022 11:10 am The auction of 13-week T-bills on 2022-04-11 was a reopening of 52-week T-bill originally auctioned 2021-07-15. In general, when the result of a Treasury auction is that the security being auction has the same maturity date and coupon rate as an existing security, the auction is treated as having been of more of the existing security rather than a new one.
Thanks,
Jon
Re: Purchased 13 week Treasuries got 1 year
Indeed. I suppose any difference would matter if you were buying multiple millions- as the "Big Swingers" do in this market. A couple hundred K- no.investorjon wrote: ↑Thu May 19, 2022 11:40 amThank you for this explanation. Can I assume the interest rate will be somewhere around the "indicative yield" that was stated when I purchased the bill?FactualFran wrote: ↑Thu May 19, 2022 11:10 am The auction of 13-week T-bills on 2022-04-11 was a reopening of 52-week T-bill originally auctioned 2021-07-15. In general, when the result of a Treasury auction is that the security being auction has the same maturity date and coupon rate as an existing security, the auction is treated as having been of more of the existing security rather than a new one.
Thanks,
Jon
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Re: Purchased 13 week Treasuries got 1 year
The difference between an "indicative yield" when a buy order was submitted and the rate determined by the auction depends on how much the market yield of similar securities has changed between when the order was submitted and the auction deadline for competitive bids.investorjon wrote: ↑Thu May 19, 2022 11:40 am Thank you for this explanation. Can I assume the interest rate will be somewhere around the "indicative yield" that was stated when I purchased the bill
I don't know what the indicative yield was when you submitted the order, but the auction results for the 13-week T-bill auctioned 2022-04-11 was a high discount rate of 0.785% (on the maturity value), with the investment rate being 0.797% (on the price of $99.801569 per $100 of maturity value).