Going To Try US-T Bills

[ST9611]

I was lazy to setup IBKR account to trade USA Treasury T-BILL,
recently Tiger brokerage just enabled TBILL , Treasury notes trading.. handy for me.

you tired? how much are the fees for US T bill?

 

[HMAN]

you tired? how much are the fees for US T bill?

0.08% on the trading amount. forgotten the details of custodian fee.

 

[ST9611]

Why so many fees? Think IKBR only $5 usd?

 

[XiaoFu99]

Hi all,

Have some USD lying around @ IBKR and wanted to try US-Tbills.



I don't quite understand fully with the above image and need some advice:

1. What does "thousand face value" mean? Does it mean "1" is equal to 1,000 USD?

2. Ask @ 98.281 x 100,000K means that there are a total of USD 100m US T-bills offered @ 98.281?

3. What is the minimum amount that I can buy?

Thanks

 

[reddevil0728]

Hi all,

Have some USD lying around @ IBKR and wanted to try US-Tbills.



I don't quite understand fully with the above image and need some advice:

1. What does "thousand face value" mean? Does it mean "1" is equal to 1,000 USD?

2. Ask @ 98.281 x 100,000K means that there are a total of USD 100m US T-bills offered @ 98.281?

3. What is the minimum amount that I can buy?

Thanks

image not shown

 

[Shiny Things]

Hi all,

Have some USD lying around @ IBKR and wanted to try US-Tbills.

I don't quite understand fully with the above image and need some advice:

1. What does "thousand face value" mean? Does it mean "1" is equal to 1,000 USD?

2. Ask @ 98.281 x 100,000K means that there are a total of USD 100m US T-bills offered @ 98.281?

3. What is the minimum amount that I can buy?

Thanks

OK, I couldn't see the image, but I'm going to try to intuit what you're looking at:

1) Yes. US T-bills trade in units of a thousand dollars' face value. So this ties in with #3: the price is quoted in "dollars per $100" or "cents on the dollar", and the actual face value is $1000.

2) Yes, with an asterisk. That is what it means - that there's $100m face value of bills offered at 98.281 - but the quotes on these bond platforms are not necessarily executable. So if you saw that offer on the screen, and sent in a bid to buy $100m at 98.281, you would probably get filled immediately, but you might not get a fill, and your bid might be left sitting there.

My experience with buying bills is actually that you tend to get filled better than the listed prices: like, in your example, if I were to send a bid for $1m of bills at 98.281, I'd often get a fill back at a slightly better price, like 98.27.

3) The minimum amount is $1k of face value. Using your example of a bill trading at 98.281, if you bought the minimum ticket, you'd pay $982.81 plus $5 brokerage, and when the bill matures, you'd get back $1000.

 

[XiaoFu99]

Hi all,
Have some USD lying around @ IBKR and wanted to try US-Tbills.
https://ibb.co/tz3GbYX

I don't quite understand fully with the above image and need some advice:
1. What does "thousand face value" mean? Does it mean "1" is equal to 1,000 USD?
2. Ask @ 98.281 x 100,000K means that there are a total of USD 100m US T-bills offered @ 98.281?
3. What is the minimum amount that I can buy?
Thanks

apologise the pic doesn't load previously


Read HWZ Forum Rules!

 

[XiaoFu99]

OK, I couldn't see the image, but I'm going to try to intuit what you're looking at:

1) Yes. US T-bills trade in units of a thousand dollars' face value. So this ties in with #3: the price is quoted in "dollars per $100" or "cents on the dollar", and the actual face value is $1000.

2) Yes, with an asterisk. That is what it means - that there's $100m face value of bills offered at 98.281 - but the quotes on these bond platforms are not necessarily executable. So if you saw that offer on the screen, and sent in a bid to buy $100m at 98.281, you would probably get filled immediately, but you might not get a fill, and your bid might be left sitting there.

My experience with buying bills is actually that you tend to get filled better than the listed prices: like, in your example, if I were to send a bid for $1m of bills at 98.281, I'd often get a fill back at a slightly better price, like 98.27.

3) The minimum amount is $1k of face value. Using your example of a bill trading at 98.281, if you bought the minimum ticket, you'd pay $982.81 plus $5 brokerage, and when the bill matures, you'd get back $1000.

Thanks.

3. So if I buy with an input of "1" @ "Thousand face value" box and a bid @ 98.281. Say, I'm successful with the bid and that will means the following:

A total charge of USD 9,833.10 (9,828.10 + 5) will be charge by IBKR. Upon maturity @ 16 Apr 2024, I will receive USD 10,000 back to my IBKR account. Profit will be USD 166.90.

Correct?

Thanks

 

[narutos]

Thanks.

3. So if I buy with an input of "1" @ "Thousand face value" box and a bid @ 98.281. Say, I'm successful with the bid and that will means the following:

A total charge of USD 9,833.10 (9,828.10 + 5) will be charge by IBKR. Upon maturity @ 16 Apr 2024, I will receive USD 10,000 back to my IBKR account. Profit will be USD 166.90.

Correct?

Thanks

Refer to Shiny's point 3. You only pay $982.81 + commission for your example.

Think of the bid/ask price as a percentage of the face value. 98.281 means 98.281% of the face value.

 

[BBCWatcher]

Here's a footnote to ST's excellent explanation: some people can get U.S. Treasuries in US$100 face value increments. Those are the people with Treasury Direct accounts. That's not most people in Singapore, however. The secondary bond market platforms operate in US$1,000 trading increments, but the price quotations reflect the US$100 increments technically available in the underlying securities.

 

[Shiny Things]

Thanks.

3. So if I buy with an input of "1" @ "Thousand face value" box and a bid @ 98.281. Say, I'm successful with the bid and that will means the following:

A total charge of USD 9,833.10 (9,828.10 + 5) will be charge by IBKR. Upon maturity @ 16 Apr 2024, I will receive USD 10,000 back to my IBKR account. Profit will be USD 166.90.

Correct?

Thanks

Not quite. You're off by an order of magnitude.

Think of the "98.281" bid as the percentage of the face value that you want to pay, and you'll have the right idea. In your case, if you buy 1 bill (one thousand face value) @ 98.281, you'll pay $982.81 plus five bucks commish. And when it matures, you'll get back a thousand bucks, for a net profit of like $12-and-a-bit.

 

[sglandscape]

Not quite. You're off by an order of magnitude.

Think of the "98.281" bid as the percentage of the face value that you want to pay, and you'll have the right idea. In your case, if you buy 1 bill (one thousand face value) @ 98.281, you'll pay $982.81 plus five bucks commish. And when it matures, you'll get back a thousand bucks, for a net profit of like $12-and-a-bit.

The 98.281 is against a face value of 100. If you invested 9828.10 + commission, the earlier example of more than 100 bucks profit is correct.

 

[vaxvms]

118.58 now


TS huat ahhhhhhhhhhhhhhhhhhhhhh

 

[dantom04]

Thinking of buying us Treasury note using moomoo...

Like to ask if I hold it to maturity I will definitely get the "yield to maturity" listed?

I'm confused..
For example..moomoo list

US Treasury Note 4.125% 31/01/2025

+5.33%
Yield to Maturity (YTM)

4.125%
Coupon Rate

2025/01/31
Maturity Date

4.153%
Curr. Yield

99.317
Mid Price

So it confirmed I will get 5.33% n not 4.125% right in 2025/01/31?

 

[Lè Crayons]

Thinking of buying us Treasury note using moomoo...

Like to ask if I hold it to maturity I will definitely get the "yield to maturity" listed?

I'm confused..
For example..moomoo list

US Treasury Note 4.125% 31/01/2025

+5.33%
Yield to Maturity (YTM)

4.125%
Coupon Rate

2025/01/31
Maturity Date

4.153%
Curr. Yield

99.317
Mid Price

So it confirmed I will get 5.33% n not 4.125% right in 2025/01/31?

Yes. You are correct. YTM

 

[BBCWatcher]

Like to ask if I hold it to maturity I will definitely get the "yield to maturity" listed?

The word "definitely" triggers an explanation. There are a few cases when you will not receive the promised Yield To Maturity. Here are some examples:

• The United States federal government defaults on its debt obligations. This is exceedingly unlikely.
• There are some problems with the custodian (Moomoo in this case) that interfere with your access to your U.S. Treasury.
• Your U.S. Treasury is confiscated or frozen due to legal troubles you get into.
• You die too soon. Then you personally would not get the Yield To Maturity, but some survivor(s) would, eventually.

 

[Laneige]

The word "definitely" triggers an explanation. There are a few cases when you will not receive the promised Yield To Maturity. Here are some examples:

• The United States federal government defaults on its debt obligations. This is exceedingly unlikely.
• There are some problems with the custodian (Moomoo in this case) that interfere with your access to your U.S. Treasury.
• Your U.S. Treasury is confiscated or frozen due to legal troubles you get into.
• You die too soon. Then you personally would not get the Yield To Maturity, but some survivor(s) would, eventually.

why last one no bao one meh
the beneficiaries wont get?!!?!

 

[BBCWatcher]

why last one no bao one meh
the beneficiaries wont get?!!?!

Presumably they would, but it's an exception to "I will definitely get."

 

[rubicon]

one more exception: you need to make sure you look at the ytm based on the ASk price. this is the MID price.

since we are being pedantic

 

[rubicon]

Not quite. You're off by an order of magnitude.

Think of the "98.281" bid as the percentage of the face value that you want to pay, and you'll have the right idea. In your case, if you buy 1 bill (one thousand face value) @ 98.281, you'll pay $982.81 plus five bucks commish. And when it matures, you'll get back a thousand bucks, for a net profit of like $12-and-a-bit.

the price quoted is the clean price. but you need to pay accrued interest. this will be shown after the fact on the interactive brokers statement. been there done that.