Managing IT Treasury allocation

[dualstow]

For treasuries, though? Traded online, without a representative?

[Lonestar]

I just spoke with bond desk at fidelity and they stated no markup.  To verify I looked at current market yield on Bloomberg and it actually showed the yield at about 5 basis points lower than Fidelity, which would indicate a lower per bond price.  Real time quotes may be a factor here since we are only talking a few basis points. 

The only markup to the bond I can find at Fidelity is the bid/ask spread of about 20 bp.  Am I missing something? However, it's so easy to buy at auction from them I think I'll start considering this route.

[Lonestar]

Just a quick re-visit to this subject (realizing I may be the only one interested).  After researching I still don't know about markup by Fidelity on secondary market purchases.

It looks like the best solution is to by at auction through Fidelity.  As far as I can tell there is absolutely no markup involved.

[Austen Heller]

Yes, buying at auction is the best way to avoid any markups.  As far as selling, you will have to pay a slight markup, but it should be very small (approx equal to half the bid-ask spread, so about 10 bp if the spread is 20 bp).  And that is just a one-time fee you pay when selling, much better than the 10-15 bp charged annually by the mutual funds and ETFs.  Buying at auction is so easy, and as long as your brokerage doesn't charge a big fee to sell on the secondary market, it's a no brainer.