Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

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psriniva
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Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by psriniva »

Hi,
I am thinking of taking money out of my no penalty CD, which is paying 2.5% and investing the proceeds in 2 year treasury bond through my Treasury Direct account.
Will I be able to sell this security before it matures. I realize that the price will be lower if the yield goes up further.
Regards
Paddy
Kind Regards | Paddy
student
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by student »

I think you would need to transfer it to a brokerage firm to sell it. https://www.treasurydirect.gov/indiv/re ... d_sell.htm Why not buy at a brokerage firm. See https://thefinancebuff.com/treasury-bil ... arket.html
RetiredAL
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by RetiredAL »

student wrote: Wed Sep 21, 2022 9:11 pm I think you would need to transfer it to a brokerage firm to sell it. https://www.treasurydirect.gov/indiv/re ... d_sell.htm Why not buy at a brokerage firm. See https://thefinancebuff.com/treasury-bil ... arket.html
+1 to Why not buy at a brokerage firm.
iflyjetzzz
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by iflyjetzzz »

I'd go for a short duration T Bill that matures shortly after the next FOMC meeting Nov 1-2 because they're on track to raise interest rates another 75 BPS and should raise short term treasuries.
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whodidntante
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by whodidntante »

iflyjetzzz wrote: Wed Sep 21, 2022 10:04 pm I'd go for a short duration T Bill that matures shortly after the next FOMC meeting Nov 1-2 because they're on track to raise interest rates another 75 BPS and should raise short term treasuries.
Probably other people reckon that as well. If one disagrees, is right, and knows how the market will move in response, one can make serious money. Maybe a few will decide to try it out.

Perhaps current prices reflect all this noodling and prognostication.
iflyjetzzz
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by iflyjetzzz »

Didn't Jay Powell indicate another 125 BPS before the end of the year today? Two meetings, making it 75 and 50 as the logical outcome.

There's a lot of hope in the markets that the Fed will ease off. I don't see that happening.
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whodidntante
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by whodidntante »

iflyjetzzz wrote: Wed Sep 21, 2022 10:35 pm Didn't Jay Powell indicate another 125 BPS before the end of the year today? Two meetings, making it 75 and 50 as the logical outcome.

There's a lot of hope in the markets that the Fed will ease off. I don't see that happening.
He told us to buckle up. He didn't go around saying that before we needed to buckle up.
Sprucebark
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by Sprucebark »

RetiredAL wrote: Wed Sep 21, 2022 9:17 pm
student wrote: Wed Sep 21, 2022 9:11 pm I think you would need to transfer it to a brokerage firm to sell it. https://www.treasurydirect.gov/indiv/re ... d_sell.htm Why not buy at a brokerage firm. See https://thefinancebuff.com/treasury-bil ... arket.html
+1 to Why not buy at a brokerage firm.
Did I miss something? The article seems to encourage buying at a brokerage. With no fee and ease of use, what is the downside vs Treasury Direct?
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whodidntante
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by whodidntante »

Sprucebark wrote: Thu Sep 22, 2022 1:52 am
RetiredAL wrote: Wed Sep 21, 2022 9:17 pm
student wrote: Wed Sep 21, 2022 9:11 pm I think you would need to transfer it to a brokerage firm to sell it. https://www.treasurydirect.gov/indiv/re ... d_sell.htm Why not buy at a brokerage firm. See https://thefinancebuff.com/treasury-bil ... arket.html
+1 to Why not buy at a brokerage firm.
Did I miss something? The article seems to encourage buying at a brokerage. With no fee and ease of use, what is the downside vs Treasury Direct?
Think about the steps required if you need to sell even one day early.
iflyjetzzz
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by iflyjetzzz »

whodidntante wrote: Thu Sep 22, 2022 1:36 am He told us to buckle up. He didn't go around saying that before we needed to buckle up.
He said that too, but pretty sure it involved a question about the updated dot plot, which now shows a median Fed funds rate of 4.4% at the end of 2022. The current Fed funds rate, after yesterday's 75 BPS increase, is 3-3.25%. So yes, it was interpreted as 75 BPS increase in Nov and 50 BPS in Dec. But since wage inflation is going to be harder to kill, I suspect that Dec could also end up at 75 BPS.
MrJedi
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by MrJedi »

Sprucebark wrote: Thu Sep 22, 2022 1:52 am
RetiredAL wrote: Wed Sep 21, 2022 9:17 pm
student wrote: Wed Sep 21, 2022 9:11 pm I think you would need to transfer it to a brokerage firm to sell it. https://www.treasurydirect.gov/indiv/re ... d_sell.htm Why not buy at a brokerage firm. See https://thefinancebuff.com/treasury-bil ... arket.html
+1 to Why not buy at a brokerage firm.
Did I miss something? The article seems to encourage buying at a brokerage. With no fee and ease of use, what is the downside vs Treasury Direct?
Perhaps you misread as reasons on why not to buy a brokerage instead of the more rhetorical why not? I would say the general opinion is to buy at a brokerage because it is significantly less of a hassle to sell and cash out if needed.
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HueyLD
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by HueyLD »

Sprucebark wrote: Thu Sep 22, 2022 1:52 am
RetiredAL wrote: Wed Sep 21, 2022 9:17 pm
student wrote: Wed Sep 21, 2022 9:11 pm I think you would need to transfer it to a brokerage firm to sell it. https://www.treasurydirect.gov/indiv/re ... d_sell.htm Why not buy at a brokerage firm. See https://thefinancebuff.com/treasury-bil ... arket.html
+1 to Why not buy at a brokerage firm.
Did I miss something? The article seems to encourage buying at a brokerage. With no fee and ease of use, what is the downside vs Treasury Direct?
Unless you are 100% certain that you can hold it to maturity, you should buy it at a brokerage.

You cannot sell before maturity at TD. Rather, you will have to transfer the security out to a brokerage. And such a transfer may take a long time. The liquidity problem can be real!
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anon_investor
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by anon_investor »

Sprucebark wrote: Thu Sep 22, 2022 1:52 am
RetiredAL wrote: Wed Sep 21, 2022 9:17 pm
student wrote: Wed Sep 21, 2022 9:11 pm I think you would need to transfer it to a brokerage firm to sell it. https://www.treasurydirect.gov/indiv/re ... d_sell.htm Why not buy at a brokerage firm. See https://thefinancebuff.com/treasury-bil ... arket.html
+1 to Why not buy at a brokerage firm.
Did I miss something? The article seems to encourage buying at a brokerage. With no fee and ease of use, what is the downside vs Treasury Direct?
Treasury Direct allows you to buy in $100 increments, brokerages requires purchases in $1,000 increments. If buying at auction, you can schedule way in advance on Treasury Direct, at a brokerage you only have a 2 day window between the auction announcement date and the auction date. Some brokerages don't have true autoroll (looking at you Schwab!), some don't even have fake autoroll (looking at you Vanguard!).
FellsGuy
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by FellsGuy »

Buy at brokerage fidelity makes it very simple as I'm sure other brokerages do. TD is where I invest and forget with auto investment and buy i-bonds but I'd never buy anything I'd want to get out from under before the end of the term.
Sprucebark
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Re: Is it possible to sell a 2 year Treasury bond bought via Treasury Direct

Post by Sprucebark »

MrJedi wrote: Thu Sep 22, 2022 6:41 am
Sprucebark wrote: Thu Sep 22, 2022 1:52 am
RetiredAL wrote: Wed Sep 21, 2022 9:17 pm
student wrote: Wed Sep 21, 2022 9:11 pm I think you would need to transfer it to a brokerage firm to sell it. https://www.treasurydirect.gov/indiv/re ... d_sell.htm Why not buy at a brokerage firm. See https://thefinancebuff.com/treasury-bil ... arket.html
+1 to Why not buy at a brokerage firm.
Did I miss something? The article seems to encourage buying at a brokerage. With no fee and ease of use, what is the downside vs Treasury Direct?
Perhaps you misread as reasons on why not to buy a brokerage instead of the more rhetorical why not? I would say the general opinion is to buy at a brokerage because it is significantly less of a hassle to sell and cash out if needed.
Ok, yep you are right. I misread the post as “why you should avoid buying at a brokerage” when the article was the opposite.
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