January 10 Yr TIPS Auction - Question re Dates

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bikechuck
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January 10 Yr TIPS Auction - Question re Dates

Post by bikechuck »

I would like to purchase some ten year TIPS at auction through Schwab this month and I have a question re the dates below

Announcement Date - 1/12/23
Auction Date - 1/19/23
Settlement Date - 1/31/23

If I place my order on 1/18/23 do I need cash in my settlement account on that date to cover the purchase or will the transaction go through as long as there is money in the settlement account by 1/31/23? Schwab pays next to nothing on funds in their settlement accounts so I would prefer to wait if it does not screw up my purchase.

I suppose this does not matter all that much but I would like to understand how it works.
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