T-Bills

By Terry Savage on April 30, 2023 | Chicken Money

Terry, I have not been able to find an answer to the following question. I’m sure you can clarify this. When is the best time to purchase a 26-week t-bill… anytime after the latest auction date and before the issue date? If I buy now, will the current % rate listed on nbc.com be locked in as soon as I complete the transaction or can the rate change right up until the issue date? Thanks.

Terry Says

No matter when you put your order in, you’ll get the “average rate” set at the next weekly (or monthly in the case of T-notes) auction. If you want to wait until the last minute to check the markets and see if you like where rates are trading, I suggest you put in your order first thing on Monday morning — since the auction is held midday.

Again, if you just want the next current rate, it doesn’t matter when you put the order in. It will be filled in the case of T-bills at the next auction, which happens every Monday (except for holidays, when it is moved).

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