Does Anyone Know How to Buy U.S. Treasuries?

Some of the short term stuff is attractive and MUCH better than what my personal bank is paying. 1-year duration paying 4.5%, risk-free? Below inflation sure, but still [relatively] decent. Online banks are paying 2%, but don't feel like going through the motions of opening an account. Plus, it would be a new experience to learn about the purchasing process for U.S. securities.  

Does anyone know how to go about purchasing based on current yields? Open to alternatives on risk-adjusted basis. 

 
Most Helpful

You buy them directly from the government, check out Treasury Direct. You can even buy savings bonds with your IRS refund. I'd keep a close eye on the Fed Funds rate as it is set manually by the fed and has a powerful effect on yields, currency value, equity, and the entire global economy.

Keep in mind that actual bond prices in the futures market are inverse to yields, as higher yields means lower valuation for older bonds. That is why bond futures are plummeting right now while yields are skyrocketing, so now is a not a bad time to buy t-bills and t-bonds directly. If you are buying bonds and bills directly, you are typically paid every six months, and the interest rate is fixed at sale. It's also not "risk-free", but risk is pretty low as it would involve the collapse of the issuing government.

It's an excellent way to invest savings or to live on passive income if you have a million or two. As boomers start retiring, a lot of them will be cashing out their 401(k)s and buying bonds. Stocks get all the attention but bonds are quietly a larger market. I'd say bond trading is more intellectually demanding and not as irrational as stocks, but both have their role in the economy. Direct bond investing on the other hand is pretty simple.

 

Aliquid id quis ea molestias qui nisi. Et et eaque sapiente ducimus adipisci aut ab soluta. Iusto aperiam quod similique.

Career Advancement Opportunities

June 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 17 97.1%

Overall Employee Satisfaction

June 2024 Investment Banking

  • Harris Williams & Co. 19 99.4%
  • JPMorgan Chase 10 98.9%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 05 97.7%
  • Moelis & Company 01 97.1%

Professional Growth Opportunities

June 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (22) $375
  • Associates (93) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (69) $168
  • 1st Year Analyst (206) $159
  • Intern/Summer Analyst (149) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
CompBanker's picture
CompBanker
98.9
6
GameTheory's picture
GameTheory
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
numi's picture
numi
98.8
10
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”