Why aren't CMBs available in TreasuryDirect.gov?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
nhs76
Posts: 186
Joined: Wed Jun 09, 2021 11:36 pm

Why aren't CMBs available in TreasuryDirect.gov?

Post by nhs76 »

It would be nice to be able to invest in the upcoming 119-day Cash Management Bill offering, to have a maturity date that's pretty close to the end of the year (Dec. 20). But it's apparently not eligible to be held in TreasuryDirect. Does someone know why that might be, and is there a workaround? Thanks.
Lyrrad
Posts: 927
Joined: Sun Jul 27, 2008 10:59 am

Re: Why aren't CMBs available in TreasuryDirect.gov?

Post by Lyrrad »

The CMB may be available at some brokerages after the auction announcement.

Starting in October, these bills should become permanent, though that won't solve your immediate issue.

From August 3, 2022:
https://home.treasury.gov/news/press-releases/jy0908
Quarterly Refunding Statement of Assistant Secretary for Financial Markets Josh Frost wrote:As announced at the May quarterly refunding, Treasury plans to transition the 4-month (i.e.,17-week) CMB to benchmark status. During this transition, Treasury will continue to issue the 4-month CMB at a regular weekly cadence. Treasury anticipates that the first benchmark 4-month bill auction will be announced on October 18, 2022 and auctioned on October 19, 2022. As noted previously, Treasury intends to maintain the Tuesday settlement and maturity cycle for the 4-month benchmark bill.
This should make them available for purchase at TreasuryDirect and be eligible for reinvestment. It seems that one can schedule bill purchases there about 8 weeks in advance, so perhaps they'll start to appear within a couple of weeks.
Topic Author
nhs76
Posts: 186
Joined: Wed Jun 09, 2021 11:36 pm

Re: Why aren't CMBs available in TreasuryDirect.gov?

Post by nhs76 »

Thank you, that is informative.
Post Reply