Hi All,
I vaguely remember reading that a 17 month treasury (bill or note, I don't know) will be offered. Is this true or false? If true, do you know when the start date is? I called Fidelity and the representative did not know.
Thankyou
Answers
You can see the auction announcement at the supplied link. Since the auction is tomorrow, you should place broker orders a couple of hours before the 11:00 AM EDT cut-off time for non-competitive bids.
I believe this is a net positive for users of Treasury Direct. Previously, CMBs could only be purchased via a bank or broker. In my experience, the 119 day CMB paid a premium of ~ 0.25% over the 13 week T-Bill. Treasury Direct also has an exceptionally low $ 100 minimum and increment.
The CUSIP for this auction is available at IBKR and E*Trade, but not at Merrill.
https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/A_20221018_3.pdf
4.14% Rate @ 98.631500 = 4.256% Yield
https://www.treasurydirect.gov/instit/annceresult/press/preanre/2022/R_20221019_1.pdf
Does anyone know if Schwab or Vanguard plan to offer them? Will Fidelity, Schwab, or Vanguard start offering them right away, say Oct. 20, 2022?
Effective with the inaugural auction of the new benchmark 17-week Treasury bill on Wednesday, October 19, 2022, Treasury plans to include 17-week bill prices in its input data set for the daily yield curve. Treasury also plans to add a 4-month CMT to the Daily Treasury Par Yield Curve Rates and 17-week bill rates to the Daily Treasury Bill Rates that it publishes.
Changes to the published tables and data files to accommodate the additional rates will appear beginning in the evening of October 18, 2022.