Going To Try US-T Bills

[ahnyaahnya]

oh. i was referring to the auction results. not those being traded

If the trades results keep going up, those of you bidding for US TBills can look forward to better % too.
Me, I'm just waiting to shift my USD into FD.
This week. Not going to wait for Fed.

 

[Danger21]

actually if doing t bill on ibkr.... does it mean....
eg...
i buy 100k face value of bond expire in jun 23
yield is 4.6%
so what i get is 2300 in jun 23
for idle cash now is 3.88% so i will get 1940
so i earn the diff of 360 usd for 6 mths...

and i see that the margin required for 100k value of us-t is about 2k??? is it that low??

 

[reddevil0728]

actually if doing t bill on ibkr.... does it mean....
eg...
i buy 100k face value of bond expire in jun 23
yield is 4.6%
so what i get is 2300 in jun 23
for idle cash now is 3.88% so i will get 1940
so i earn the diff of 360 usd for 6 mths...

and i see that the margin required for 100k value of us-t is about 2k??? is it that low??

I don't get what you are saying...

If you buy 100k face value of T-bill expire on jun 23...

You will just pay for whatever price that's being quoted which will be <100k..

then when june 23 comes, u will get back 100k.

 

[abcde83]

All of u so comfortable with fx risk?
MAS won't tightened from here?
If mas tightened ur usd will weaken against sgd...
Can cover the 1% or so differentiate?

 

[reddevil0728]

All of u so comfortable with fx risk?
MAS won't tightened from here?
If mas tightened ur usd will weaken against sgd...
Can cover the 1% or so differentiate?

USD is a very common currency. So have you considered people might have idle USD to put somewhere?

 

[abcde83]

USD is a very common currency. So have you considered people might have idle USD to put somewhere?

I have no use for usd, so i don't hold usd.
Usually just swap back to sgd after holidays.

Unless u have liability in usd, if not it's a fx risk isnt it?

 

[reddevil0728]

I have no use for usd, so i don't hold usd.
Usually just swap back to sgd after holidays.

Unless u have liability in usd, if not it's a fx risk isnt it?

Nobody say must purposely convert to do it and it makes no sense.

but have you considered the scenario I mentioned above?

 

[Danger21]

I don't get what you are saying...

If you buy 100k face value of T-bill expire on jun 23...

You will just pay for whatever price that's being quoted which will be <100k..

then when june 23 comes, u will get back 100k.

i preview on ibkr...
ibkr state that for 100k face value of bond.... i paid about 97.8k which translate to a yield of 4.6% p.a (this i understand)

but on the preview page, the margin required for this 100k bond is only 1330???? (this portion is the one i having issue with.... 100k bond only require less than 2k margin?)

 

[reddevil0728]

i preview on ibkr...
ibkr state that for 100k face value of bond.... i paid about 97.8k which translate to a yield of 4.6% p.a (this i understand)

but on the preview page, the margin required for this 100k bond is only 1330???? (this portion is the one i having issue with.... 100k bond only require less than 2k margin?)

Do you know how initial margin and maintenance margin works?

 

[Danger21]

Do you know how initial margin and maintenance margin works?

yes i do understand... but anyhow both are less than 2k when i preview it

 

[revhappy]

yes i do understand... but anyhow both are less than 2k when i preview it

Yes, because tbills are very safe you get about 10x leverage. But if you take the leverage you pay 6.33% interest rate. So ignore the margin calculations and make you have enough cash to buy.

 

[Kayeesha]

I have some questions about purchasing via IBKR which I hope someone can help me with.

Besides, the min $5 commission, I note there are also the bond desk fees of $0 or $2.50 per trade depending on whether the order is executed immediately or not. Does this mean that in order to avoid paying any additional charges apart from the $5 commission, I have to enter a price that is at least equal to the ask price?

But what if the market moves before my order reaches the exchange?

Thanks in advance.

 

[reddevil0728]

I have some questions about purchasing via IBKR which I hope someone can help me with.

Besides, the min $5 commission, I note there are also the bond desk fees of $0 or $2.50 per trade depending on whether the order is executed immediately or not. Does this mean that in order to avoid paying any additional charges apart from the $5 commission, I have to enter a price that is at least equal to the ask price?

But what if the market moves before my order reaches the exchange?

Thanks in advance.

Hmm where did you see that?

 

[Kayeesha]

Hmm where did you see that?

From IBKR’s commission for bonds:

https://www.interactivebrokers.com/en/pricing/commissions-bonds.php?re=amer

Select BondDesk fees under Fees and Expenses:

https://www.interactivebrokers.com/en/index.php?f=4414&nhf=T

 

[reddevil0728]

From IBKR’s commission for bonds:

https://www.interactivebrokers.com/en/pricing/commissions-bonds.php?re=amer

Select BondDesk fees under Fees and Expenses:

https://www.interactivebrokers.com/en/index.php?f=4414&nhf=T

Tbill is treasuries

 

[Kayeesha]

Tbill is treasuries

I know but since IBKR do not hold them, our orders would still have to be executed by their BondDesk. Hence these fees? That’s what I was told by the customer service. What I’m confused now is they also said that if I enter a price equal to the offer price (I think that is ask price), that is removing liquidity and I will be charged fees. However, this seems to contradict what is on their website.

 

[reddevil0728]

I know but since IBKR do not hold them, our orders would still have to be executed by their BondDesk. Hence these fees? That’s what I was told by the customer service. What I’m confused now is they also said that if I enter a price equal to the offer price (I think that is ask price), that is removing liquidity and I will be charged fees. However, this seems to contradict what is on their website.

Try with paper account you can see for yourself

 

[Kayeesha]

Try with paper account you can see for yourself

Not sure how to do this and not too comfortable switching about in case something gets reset.

Can those who have purchased T-bills help? I believe there are some who have?

 

[reddevil0728]

Not sure how to do this and not too comfortable switching about in case something gets reset.

Can those who have purchased T-bills help? I believe there are some who have?

huh when u log in that time. just toggle to paper. doesn't reset anything.

am telling u it is just treasures. just look at treasuries

test with paper to see it for yourself.

 

[Kayeesha]

huh when u log in that time. just toggle to paper. doesn't reset anything.

am telling u it is just treasures. just look at treasuries

test with paper to see it for yourself.

Ok, I take it that you’re confident there are no additional fees besides the commission.

I’d still need to wait till the US markets open to trade.

So, in the meantime, I hope someone who has bought T-bills would kindly confirm that this is the case.

Thanks, reddevil0728.