Gyroscopic Investing

Anyone look at buying bonds at Vanguard recently?

I hadn't looked in a long time, so I checked out Vanguard. Not seeing the usual option to click right to the 30 year offerings:
I did an actual search. The minimum buy was $10,000 earlier this morning. Now there is a 2040 bond you can buy singly, but it looks like slim pickings compared to last time I bought bonds there.

Interesting.

Secondary: I found my way to bonds maturing in 2050 using the search criteria 10y to 30y.
Auction: looks like it's more than 5 weeks away.
EDIT: I was looking at the wrong row. Feb 03 as Tortoise states below. As for why I would think a 5-week wait is normal, I have no explanation. Suspended disbelief is strong with me. No explanation other than I am going out of my mind looking for the other sock in a pair of fancy made-in-Vermont woolen ones. Losing my patience.

I looked on Vanguard just now and saw seven different T-bonds in the 20-30 year maturity range that had a purchase minimum of only $1,000 face value.

Maybe the selection just varies throughout the day?

dualstow wrote: ↑Mon Feb 01, 2021 12:38 pm Interesting.

Secondary: I found my way to bonds maturing in 2050 using the search criteria 10y to 30y.

LOL!

Yea, 2050 is 30 years away. I was putting in the maturity date of the bonds that I already have (early 2040s). I've said it before and I'll say it again, MORE RETARDED THAN WSB!

Anyways, $5,500 looks like the minimum buy.

EDIT: seriously, WTF mates? I just reset the search filter for 2040-2050, and 912810SN9 for 2050 popped up with a 1 minimum. I didn't see it appear when I searched for 2045-2050.

Auction: looks like it's more than 5 weeks away.

I looked at that the other day. Why wouldn't you be able to buy bonds for the 11 Feb auction with Vanguard?

I think both of you guys are mistaken about the auctions.

I'm on Vanguard right now, and it looks like the next auction for 30-year Treasuries opens in two days (Feb 3rd). There's also an auction for 20-year Treasures that opens in 10 days (Feb 11).

You won't see the link to buy those new bonds in the leftmost column until the day the auction opens.

Most likely.

I was looking on Treasury Direct to see when their next auctions were. This page says it's for institutional investors, which I assumed meant Vanguard. Maybe it opens up for Vanguard's customers so they know how many they need to buy on the 11th? I've never bought bonds at auction through Vanguard, just secondaries.

Tortoise wrote: ↑Mon Feb 01, 2021 1:17 pm I think both of you guys are mistaken about the auctions.

I'm on Vanguard right now, and it looks like the next auction for 30-year Treasuries opens in two days (Feb 3rd). There's also an auction for 20-year Treasures that opens in 10 days (Feb 11).

You won't see the link to buy those new bonds in the leftmost column until the day the auction opens.

You're right, I was looking at the wrong row. I'll correct my post above.

As for the 20yr, I ignored what Kriegs said about 2040 and was just focused on 30yr. I was pretty sure that's what he wanted.

Kriegsspiel wrote: ↑Mon Feb 01, 2021 1:43 pm Most likely.

I was looking on Treasury Direct to see when their next auctions were. This page says it's for institutional investors, which I assumed meant Vanguard. Maybe it opens up for Vanguard's customers so they know how many they need to buy on the 11th? I've never bought bonds at auction through Vanguard, just secondaries.

I have. And at Fidelity, and I was surprised to see different offerings than those at Vanguard. From that point onward I only look up Vanguard at Vanguard and Fidelity at Fidelity and mark my calendar.

Here’s your reminder, Kriegs. Today’s the the big day, right? When I go bonds right now I get a mostly blank screen but that’s probably because I’m on an iPad.

Edit: 11am EST

Can bid for 10yr but not 30yr?

I found the CUSIP 912810SU3 at Fidelity and plugged it into Vanguard, but the 'Buy' link is greyed out.

I gave up and ended up using Fidelity. <shrug>

The 30s are up on Vanguard now, FYI.

I need to buy some 30-year treasuries through Vanguard, but have absolutely no idea what I'm doing. Anybody willing to let me tag along for the ride?

Damn, I think I just deleted all the screenshots yesterday that I used to help Vinny a while ago.

You go into your brokerage. Below where it says your name and account, and above where it says your balances, the left-most menu item is "Buy And Sell."

Click Buy And Sell, then click Trade Bonds Or CDs.

Then click on Treasuries. Then check the radio button for Auction. Then scroll down to the 30 years and click Buy to the left.

I happen to have that page open now, so this is the screen with the Buy link, the final step in kriegs' instructions.

Okay, so I would buy the one on Line 7 on the post above and be okay?

I'm going to be using money that is currently in VUSTX. Do you guys think it would be wise to keep part of my LT treasury funds in VUSTX, for ease of rebalancing, or should I go "all in" with 30-years? This is a bit scary for me, having never bought bonds outright before.

Maddy wrote: ↑Thu Feb 04, 2021 11:25 am Okay, so I would buy the one on Line 7 on the post above and be okay?

Yes.

I'm going to be using money that is currently in VUSTX. Do you guys think it would be wise to keep part of my LT treasury funds in VUSTX, for ease of rebalancing, or should I go "all in" with 30-years? This is a bit scary for me, having never bought bonds outright before.

You need to have the funds in your settlement fund, you can't exchange shares of a mutual fund for the 30 year Treasuries.

I don't think you're breaking it by having some of each. I've used individual bonds since I started, but I'm thinking of buying some VUSTX when I sell some that are near the 20 year mark.

Thanks, Kriegs~ Here I go!

Hope it went well, Maddy. ( I was stuck talking to a telecom company that wouldn't let me update my email address because it didn't end in dot com).
I don't mind the funds, yours included, but I prefer the individual bonds myself.
Maybe it helps that I'm just 50, so I feel like I'm going to get my money back. As is often pointed out on other forums, though, that is kind of an illusion, a fallacy to use that sentiment against buying the same product via a fund.

So here's a question about the mechanics of buying bonds at auction through a broker. Will the final coupon rate be finalized at the close of the auction on the 15th?

Kriegsspiel wrote: ↑Fri Feb 05, 2021 8:27 am So here's a question about the mechanics of buying bonds at auction through a broker. Will the final coupon rate be finalized at the close of the auction on the 15th?

The one I’m looking at closes on the 11th and settles on the 16th. Anyway, here’s my shitty guess before Kevin or someone else brighter than me comes and sets us both straight:

We small fries are non-competitive bidders and take whatever rate they give us. But there are large institutions making competitive bids. If they’re too greedy, they won’t get the instrument at all. If they’re not, they may get exactly what they asked for. It is these competitive bids that really set the rate — Oh, please don’t let the redditors target this* — so after everything’s tallied at the close, the rate is set.

Is that close, guys?

As for when we find out, i used to be able to google “treausury auction results” with the cusip and see a pdf with the rate. That doesn’t work for me anymore and I sometimes wait for my statement to see what the income is going to be. Of course, after the trade is settled, i can see my exact cost.

*but since they’re all individual small fries, does it matter? How does that work?

IIRC this is all explained on the TreasuryDirect website and while it has been awhile I don't think I felt I was getting the shaft in terms of how the process works.

Kbg wrote: ↑Fri Feb 05, 2021 10:41 pm IIRC this is all explained on the TreasuryDirect website and while it has been awhile I don't think I felt I was getting the shaft in terms of how the process works.

I looked through the TD website, and I didn't see that they (specifically) answered my question anywhere. I would have to assume that I'm right, since from what I understand, every CUSIP has the same coupon. If it has the same coupon, and we're buying it at par, then that's that.

Kbg wrote: ↑Fri Feb 05, 2021 10:41 pm ...I don't think I felt I was getting the shaft

?

I think КГБ didn't like your "we take whatever they give us" phrasing