Treasury floating rate note secondary market

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
lahob
Posts: 33
Joined: Mon Feb 26, 2018 10:17 am
Location: USA

Treasury floating rate note secondary market

Post by lahob » Wed Feb 28, 2018 9:47 am

The US Treasury introduced floating rate notes (FRNs) a couple years ago.
https://www.treasurydirect.gov/indiv/re ... es_frn.htm

They would make an attractive substitute for money market funds except that there doesn't appear to be any secondary market for them, rendering them illiquid for the entire ~2 year term. At least Vanguard and Fidelity don't allow buying or selling on the secondary market. Can someone check if other brokerages (WellsTrade, TD Ameritrade, Interactive Brokers, etc.) have a secondary market for these CUSIPs?

9128283T5
9128283B4

DebiT
Posts: 234
Joined: Sat Dec 28, 2013 1:45 pm

Re: Treasury floating rate note secondary market

Post by DebiT » Wed Feb 28, 2018 2:23 pm

Following
Age 62, life turned upside down 3/2/19, thanking God for what I've learned from this group

NancyABQ
Posts: 283
Joined: Thu Aug 18, 2016 3:37 pm

Re: Treasury floating rate note secondary market

Post by NancyABQ » Wed Feb 28, 2018 2:51 pm

Yes at Schwab:

US Treasury VAR 01/31/2020 9128283T5 1.570 01/31/2020 Ask 25 99.99970 31.620 25,031.550
US Treasury VAR 10/31/2019 9128283B4 1.403 10/31/2019 Ask 25 100.14620 28.570 25,065.120

Columns are Qty/Price/Accrued Interest/Est Total

Topic Author
lahob
Posts: 33
Joined: Mon Feb 26, 2018 10:17 am
Location: USA

Re: Treasury floating rate note secondary market

Post by lahob » Wed Feb 28, 2018 8:09 pm

NancyABQ wrote:
Wed Feb 28, 2018 2:51 pm
Yes at Schwab:

Code: Select all

US Treasury VAR 01/31/2020 9128283T5 	1.570 	01/31/2020 	Ask 	25 	99.99970 	31.620 	25,031.550 	
US Treasury VAR 10/31/2019 9128283B4 	1.403 	10/31/2019 	Ask 	25 	100.14620 	28.570 	25,065.120
Thanks. Does the "Ask" there mean these are offers to sell? Are there any bids (offers to buy)? The latter is what I'm looking for. I should have said so. :happy

NancyABQ
Posts: 283
Joined: Thu Aug 18, 2016 3:37 pm

Re: Treasury floating rate note secondary market

Post by NancyABQ » Wed Feb 28, 2018 8:26 pm

lahob wrote:
Wed Feb 28, 2018 8:09 pm
NancyABQ wrote:
Wed Feb 28, 2018 2:51 pm
Yes at Schwab:

Code: Select all

US Treasury VAR 01/31/2020 9128283T5 	1.570 	01/31/2020 	Ask 	25 	99.99970 	31.620 	25,031.550 	
US Treasury VAR 10/31/2019 9128283B4 	1.403 	10/31/2019 	Ask 	25 	100.14620 	28.570 	25,065.120
Thanks. Does the "Ask" there mean these are offers to sell? Are there any bids (offers to buy)? The latter is what I'm looking for. I should have said so. :happy
Yes those would be offers to sell. That's from Schwab's trading interface. I could have bought what was offered there.

I don't think there would be a way for me to see "offers to buy" there, unless I was actually trying to sell something.

I'm not sure if Schwab offers those kind of statistics (volume, current ask, current offer, etc) for Bonds?

Valuethinker
Posts: 39223
Joined: Fri May 11, 2007 11:07 am

Re: Treasury floating rate note secondary market

Post by Valuethinker » Thu Mar 01, 2018 4:37 am

NancyABQ wrote:
Wed Feb 28, 2018 8:26 pm
lahob wrote:
Wed Feb 28, 2018 8:09 pm
NancyABQ wrote:
Wed Feb 28, 2018 2:51 pm
Yes at Schwab:

Code: Select all

US Treasury VAR 01/31/2020 9128283T5 	1.570 	01/31/2020 	Ask 	25 	99.99970 	31.620 	25,031.550 	
US Treasury VAR 10/31/2019 9128283B4 	1.403 	10/31/2019 	Ask 	25 	100.14620 	28.570 	25,065.120
Thanks. Does the "Ask" there mean these are offers to sell? Are there any bids (offers to buy)? The latter is what I'm looking for. I should have said so. :happy
Yes those would be offers to sell. That's from Schwab's trading interface. I could have bought what was offered there.

I don't think there would be a way for me to see "offers to buy" there, unless I was actually trying to sell something.

I'm not sure if Schwab offers those kind of statistics (volume, current ask, current offer, etc) for Bonds?
Just on terminology, and I am London-based, I believe that the following terminology is correct:

bid price - price at which the market is prepared to buy your securities (and usually a bid size as well is given) - the lower price

offer price or ask price - price at which the market is prepared to sell you securities (and size) - higher price

I am not sure whether it is market specific whether it is the "offer" or the "ask" or whether it is a trans-Atlantic thing.

London shares give a Bid Offer spread, UK gilts on Bloomberg give a Bid Ask spread (and Bloomberg also uses American style MMDDYY)

Post Reply