iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
You can buy newly issued U.S. Treasury marketable securities at auction through either TreasuryDirect or a bank, broker, or dealer. TreasuryDirect accepts noncompetitive bids only; an intermediary can accept noncompetitive or competitive auction bids and may also let you buy already-issued securities in the secondary market. TreasuryDirect’s minimum is $100, in $100 increments, and most securities bought there cannot be transferred or sold for 45 calendar days.
Choose the buying route that fits how you want to trade and hold the security
| Feature | TreasuryDirect | Bank, broker, or dealer |
|---|---|---|
| New issues at auction | Yes; noncompetitive bids only. | Yes; the institution may accept competitive or noncompetitive bids. |
| Competitive auction bids | No. | Available through participating institutions. The bid may be partially filled or rejected. |
| Already-issued securities | Not a secondary-market trading channel. | May be available through the institution’s secondary-market service. |
| Where the security is held | Directly in TreasuryDirect. | In the commercial book-entry system, with the institution between you and Treasury. |
| Minimum and bid limit | TreasuryDirect states a $100 minimum in $100 increments and a $10 million maximum for a noncompetitive bid. TreasuryDirect | Treasury states a $100 minimum in $100 increments for marketable securities. The institution sets its own order process; confirm any additional limits directly. |
| Transfer or sale timing | Most new purchases are restricted from transfer or sale for 45 calendar days, with an exception for qualifying reinvestments. | Trading and transfer terms depend on the institution and security. |
| Fees and order deadlines | TreasuryDirect says it does not charge to open an account or buy securities. | Confirm fees, deadlines, and settlement instructions with the institution. |
TreasuryDirect describes its process as bidding when Treasury auctions the type of security you want. See TreasuryDirect’s buying guidance. Choose the direct route if you are comfortable buying at auction and holding the security there; consider an intermediary if you need competitive bidding or secondary-market access. That difference is about process and custody, not a guarantee of liquidity or a particular investment result.
Understand the five marketable Treasury security types
Marketable securities can be transferred or sold before maturity, subject to the restrictions and terms of the account holding them. Treasury lists bills, notes, bonds, Treasury Inflation-Protected Securities (TIPS), and floating rate notes (FRNs). Treasury’s overview of marketable securities
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
| Security | Term and payments | Key distinction |
|---|---|---|
| Treasury bills | Terms range from 4 to 52 weeks. Sold at a discount or par; face value is paid at maturity. | No periodic interest payment; the difference between purchase price and face value is the interest. Treasury bills |
| Treasury notes | 2, 3, 5, 7, or 10 years; fixed rate set at auction, with interest paid every six months. | Medium-term fixed-rate security. Treasury notes |
| Treasury bonds | 20 or 30 years; fixed rate set at auction, with interest paid every six months. | Long-term fixed-rate security. These are not Series EE, I, or HH savings bonds. Treasury bonds |
| TIPS | Principal adjusts with inflation indexation; interest payments are based on adjusted principal. | Inflation adjustment affects principal and has tax implications. TIPS |
| FRNs | Two-year maturity; variable interest rate, paid quarterly. | Floating rather than fixed interest rate. Floating rate notes |
Terms, auction schedules, and rates can change. Check Treasury’s current product pages and auction information rather than relying on an old rate or schedule.
#1 Best Overall
- DESIGNED FOR RESTRICTIVE ENDORSEMENTS – Specifically created for endorsing U.S. Bearer Securities and securities payable to bearer, including U.S. Treasury bonds, Treasury notes, Treasury bills, and certificates of indebtedness. Once applied, the endorsement restricts the instrument to deposit only, supporting proper handling during banking and financial transactions.
- COMPLIES WITH U.S. TREASURY GUIDELINES – Stamp layout, wording, and impression size are designed to align with applicable U.S. Government Code of Federal Regulations, including CFR 328.5 and 328.6. The COLOP pre-inked stamp meets the approximate required impression size of 4 inches in length and 1-1/2 inch in height.
- MULTIPLE LAYOUT VERSIONS AVAILABLE – Offered in five different endorsement versions to meet varying banking requirements. Version 1 is the most commonly used. For Versions 2–5, the applicable Federal Reserve Bank city must be specified so it can be incorporated into the stamp design.
- PRE-INKED COLOP STAMP FOR CLEAN, CONSISTENT IMPRESSIONS – Features a premium COLOP pre-inked mechanism that delivers clear, uniform impressions without the need for a separate ink pad. Ideal for frequent use in banking offices, accounting departments, and financial institutions.
- ESSENTIAL TOOL FOR BANKING & FINANCIAL USE – Restrictive endorsement stamps are widely used for checks, securities, and financial documents to help ensure items are directed only to the intended account. Commonly used by banks, credit unions, treasury departments, and corporate finance teams.
Buy a new issue in TreasuryDirect
- Open a TreasuryDirect account. TreasuryDirect says there is no charge to open an account or buy securities. TreasuryDirect marketable-security FAQs
- Sign in and choose Buy Direct. Select the marketable security type and the auction you want.
- Enter the purchase amount. The minimum is $100, in $100 increments; TreasuryDirect’s maximum noncompetitive bid is $10 million. The amount must fit within the stated limits.
- Submit a noncompetitive bid. You specify the security and amount, then accept the auction-determined rate, yield, or discount margin. You do not set the final rate yourself. Treasury says a noncompetitive bidder receives the requested amount, subject to the stated limits.
- Check your funding source and available balance. TreasuryDirect draws funds from the linked source of funds or a Certificate of Indebtedness. Make sure sufficient funds are available by the security’s issue date.
- Review the result after the auction. Auction-result details are available in your TreasuryDirect account. The final rate, yield, or discount margin is not known when you schedule the purchase.
New TreasuryDirect marketable-security purchases generally cannot be transferred or sold during the first 45 calendar days. Treasury states an exception when the new security is purchased with proceeds from a maturing-security reinvestment. Check TreasuryDirect’s current purchase rules.
Place an auction order through a bank, broker, or dealer
Contact the institution to find out which Treasury securities and auctions it supports, how to submit an order, and when its order window closes. Treasury directs customers to the institution for order deadlines, payment and settlement instructions, and charges.
For a given security in the same auction, choose one bid type through the intermediary:
- Noncompetitive: You specify an amount and accept the auction result. Treasury says noncompetitive bidders receive the requested amount, subject to the bid limits.
- Competitive: You specify an acceptable rate, yield, or discount margin. Depending on the auction result, your order can be filled in full, partially filled, or rejected.
You cannot submit both types of bid for the same security in the same auction through an intermediary. Treasury’s auction guidance explains the bid types and allocation outcomes. Confirm with your institution how it displays the order, collects funds, and reports the result.
Rank #3
Buy an already-issued security in the secondary market
A brokerage may offer existing Treasury securities for purchase after their original auction. Unlike an auction order, a secondary-market purchase is made at the prevailing market price, which may be above or below face value and can change with market conditions. The price is not necessarily the amount you receive at maturity.
Before placing an order, check the security’s maturity date, displayed price, yield convention, accrued interest, and any transaction charge. A reopened note, bond, TIPS, or FRN can have the same CUSIP, maturity, and interest-payment dates as the original issue, but a different issue date and usually a different price; accrued interest may be included in the purchase price. Treasury describes these features in its marketable-security FAQs. The exact labels, pricing display, and fees depend on the brokerage.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What custody changes when you use an intermediary
TreasuryDirect is a direct holding system. With a bank, broker, or dealer, the security is held in the commercial book-entry system, an indirect arrangement in which the intermediary stands between you and Treasury. The intermediary’s account statements, transfer procedures, and available trading services therefore matter. Treasury’s FAQs explain the distinction between these holding arrangements.
If you need to sell or transfer a TreasuryDirect purchase soon after buying it, the 45-day restriction may rule out that route for the period covered. An intermediary can provide access to secondary-market transactions, but a sale price depends on market conditions and may differ from face value.
Best Value
Questions to settle before you place an order
- Is this a new issue at auction or an already-issued security in the secondary market?
- For an auction, are you placing a competitive or noncompetitive bid, and what happens if it is partially filled?
- What is the institution’s order deadline, funding method, settlement date, and fee schedule?
- For a secondary-market purchase, what are the price, yield convention, accrued interest, maturity, and transaction charge?
- Where will the security be held, and what are the institution’s procedures for statements, transfer, and sale?
- If using TreasuryDirect, are funds available by the issue date, and can you accept the 45-day transfer-or-sale restriction?
For broader mechanics, including auction and holding details, see Treasury’s How Treasury Marketable Securities Work.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
