Page 1 of 1

treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 11:48 am
by rotLobster
I set up an account at Fidelity to be used to park cash. I have over 100k in a checking account that pays little interest. this account has grown over the years. its main purpose is as an emergency fund and to bridge me from my current age, 66 to 70 when i will draw SS if i loose my current job.

my intent is to distribute this amongst a series of 4 week T-bills. But when i go to see what is available for the next auction, there are no 4 week tbills, only longer term buys. Im new to this so i dont quite understand. are they 'sold-out' or not issued for next week and so forth. what is the best way to keep up with the availability of t-bills and so forth.

thanks for any info.

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 11:52 am
by livesoft
A very good way is to call up Fidelity and state your questions and concerns.

You may also search on "treasury bill auction announcement site:bogleheads.org"

viewtopic.php?t=244645

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 11:55 am
by jalbert
You could just put this in the Vanguard Treasury Money Market fund VUSXX and pay Vanguard 9 bp/year to manage it for you. 7-day SEC yield is 1.89% compounding to 1.91%.

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 12:02 pm
by asif408
Try this link: https://www.treasurydirect.gov/instit/i ... m?upcoming. Looks like an auction on 8/14, announcement will be 8/13.

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 12:03 pm
by livesoft
There are many "convenient" ways to get T-bills. For instance, there are ETFs that hold only T-bills such as BIL. Fully liquid while the stock market is open. You do pay for the convenience though.

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 12:05 pm
by SpaethCo
The piece you're missing is the treasury auction calendar: https://www.treasury.gov/resource-cente ... ctions.pdf

Each treasury type will only show up as new issues in Fidelity on the "Announcement Date" and will drop out of the list on the "Auction Date."

So 13 and 26 week T-bills will show up sometime on Thursday, and then drop out of the list shortly before the auction on Monday. 4 week T-bills will show up sometime on Monday afternoon and drop out of the list before the Tuesday auction.

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 12:32 pm
by rotLobster
SpaethCo wrote:
Fri Aug 10, 2018 12:05 pm
The piece you're missing is the treasury auction calendar: https://www.treasury.gov/resource-cente ... ctions.pdf

Each treasury type will only show up as new issues in Fidelity on the "Announcement Date" and will drop out of the list on the "Auction Date."

So 13 and 26 week T-bills will show up sometime on Thursday, and then drop out of the list shortly before the auction on Monday. 4 week T-bills will show up sometime on Monday afternoon and drop out of the list before the Tuesday auction.
thank you, this is the answer to the question i was asking. I know about the other methods for achieving approximately the same result but im specifically interested in short term t-bills in this instance.

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 12:41 pm
by Nate79
Why are you only looking at new issue tbills?

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 5:06 pm
by Dottie57
SpaethCo wrote:
Fri Aug 10, 2018 12:05 pm
The piece you're missing is the treasury auction calendar: https://www.treasury.gov/resource-cente ... ctions.pdf

Each treasury type will only show up as new issues in Fidelity on the "Announcement Date" and will drop out of the list on the "Auction Date."

So 13 and 26 week T-bills will show up sometime on Thursday, and then drop out of the list shortly before the auction on Monday. 4 week T-bills will show up sometime on Monday afternoon and drop out of the list before the Tuesday auction.
So how do you buy the TBills if they disappear on auction day? Do I buy on announcement day?

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 5:29 pm
by SpaethCo
Dottie57 wrote:
Fri Aug 10, 2018 5:06 pm
So how do you buy the TBills if they disappear on auction day? Do I buy on announcement day?
4 week treasuries only have about a 24 hour window between announcement and auction, so yeah, you’d probably want to get your order submitted the evening of the announcement date to ensure you don’t miss the cutoff the next day.

You’re placing a non-competitive bid order, so you’re going to get the same price whether you submit that order 1 second after announcement or 1 second before the cutoff.

Re: treasury bills 4 weeks not always available?

Posted: Fri Aug 10, 2018 7:23 pm
by Dottie57
SpaethCo wrote:
Fri Aug 10, 2018 5:29 pm
Dottie57 wrote:
Fri Aug 10, 2018 5:06 pm
So how do you buy the TBills if they disappear on auction day? Do I buy on announcement day?
4 week treasuries only have about a 24 hour window between announcement and auction, so yeah, you’d probably want to get your order submitted the evening of the announcement date to ensure you don’t miss the cutoff the next day.

You’re placing a non-competitive bid order, so you’re going to get the same price whether you submit that order 1 second after announcement or 1 second before the cutoff.
Thank you!