Buying Treasury Marketable Securities at Auction on TreasuryDirect

TreasuryDirect lets you buy Treasury marketable securities directly at auction — no broker needed, no middleman taking a cut.

How the Bidding Process Works

TreasuryDirect only accepts noncompetitive bids. Practically speaking, that means you agree in advance to take whatever rate, yield, or spread comes out of the auction’s competitive bidding process. The tradeoff is a good one for most buyers: you’re guaranteed to get the full amount you put in for, with no risk of a partial fill.

One thing worth knowing upfront — Treasury Inflation-Protected Securities (TIPS) and Floating Rate Notes (FRNs) can occasionally come with negative yields or spreads at auction. If that happens on a bid you’ve placed, you’d pay more for the security than you’d get back at maturity. It doesn’t happen often, but it’s worth keeping in mind before you bid on either of those.

Placing a Bid

When you’re ready to buy, go to BuyDirect, enter your purchase details, and pick from whatever securities are currently open for bidding. A few things to sort out before you submit:

• Watch the clock. Bids have to be in before the noncompetitive cutoff time on auction day — anything after that gets rejected.
• Read before you confirm. Go through your Purchase Review and Purchase Confirmation carefully to make sure you’re bidding in the right auction for the right amount.
• Give it a few days. Your securities will generally show up in your account within a week of the auction date.

Keeping Track of What’s Coming Up

The Announcements, Data and Results section of TreasuryDirect posts a Tentative Auction Schedule for upcoming Treasury securities. If you like to plan your purchases ahead of time, that’s the place to check.