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.
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