How does trading treasuries from secondary work at Fidelity?

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How does trading treasuries from secondary work at Fidelity?

Post by Hector » Mon Jun 10, 2019 6:32 pm

I recently opened HSA with Fidelity and am learning how their platform work.

I am thinking about buying 4-weeks/8-weeks notes which are going to be issued on 6/18.
Based on talking to fixed income representative at Fidelity,
6/11 - announcement date and these notes will show up on fidelity. Order can be placed after that
6/13 - auction date. Order needs to be placed by 10:30 eastern time
6/18 - settlement date

I asked representative if I can buy something from secondary market (using all cash I have) today with maturity date of 6/18. Then place an order of buying notes using proceed from matured security. I was informed, I cannot do this because in this scenario, I wont have enough $$ in CORE position (cash) between 6/11 to 6/13 when I can place an order. For fidelity account holder, is this sound correct?

I have read on forum that you don't have this issue with Vanguard and Schwab.

Still, I want to try this out. So I bought 1 quantity with maturing date on 6/13 (auction date) from secondary market. I will try to place an order including proceed from this and see if I can do it. I will do the same for settlement date.

Another question:
This is how Ask column look from Depth of Book for treasury note maturing on 6/28

Code: Select all

Price	Quantity(Min)	Yield							Action
99.956	X(100)		Don't remember 						Buy
99.956	Y(1)		Don't remember, but it was little less than above one	Buy
To buy 1 quantity, I placed an order by clicking on Buy button on second row. It price was being auto filled with 99.956 and I placed an order. I learned that you can only do Fill or Kill order for something like this. That order got cancelled. I placed it two more times and same result. Why so?

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Joined: Tue Oct 16, 2018 11:48 am

Re: How does trading treasuries from secondary work at Fidelity?

Post by jacksonm » Tue Jun 11, 2019 3:37 pm

Don't really understand what you are trying to do.

I buy T-Bills on Fidelity all the time and it's a very simple process. Don't remember what Order Type I select from the drop-down list, probably "market" but it gets filled almost immediately.

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