Tips For Buying Treasury Inflation-Protected Securities

Posted on: 29 May 2017

If you are interested in buying Treasury Inflation-Protected Securities, there is a good chance that you are not sure where to go to purchase them. Here are some tips for purchasing such securities so that you are able to be as successful as possible.

1. Buy Treasury Inflation-Protected Securities From the US Government in a Noncompetitive Bid

The most straightforward way to buy Treasury Inflation-Protected Securities is to simply purchase them straight from the US government, specifically, the Treasury. To do this, you need to create an account with the Department of the Treasury on their website, which is called TreasuryDirect. Once you are on this website, you will need to accept their terms and conditions for this noncompetitive bid. The two terms and conditions are that you will accept the yield rate that is given at the auction and that you will be guaranteed the the Treasury Inflation-Protected Securities in the amount that you would like.

2. Buy Treasury Inflation-Protected Securities From a Bank in a Competitive Bid

Another option is to purchase these securities from a bank in a competitive bid. This process involves you getting to say the yield that you want. Depending on the auction, you may not get the Treasury Inflation-Protected Securities that you are interested in receiving and, if you do get them, you might not get them in the original amount that you wanted. This is due to the fact that the auction is working to meet your yield requirements. It is less convenient, but will end up being more profitable if you do your research and are lucky.

3. Buy Treasury Inflation-Protected Securities From a Bank in a Noncompetitive Bid

Finally, you are also able to buy Treasury Inflation-Protected Securities from a bank in a noncompetitive bid, which is similar to the process that was described above for buying them directly from the Department of the Treasury. The bank will sell you the specific amount of Treasury Inflation-Protected Securities that you are interested in purchasing and the exact type of Treasury Inflation-Protected Securities, but you will have to accept whatever the yield is at the time of auction.

There are pros and cons for purchasing Treasury Inflation-Protected Securities from the Treasury. There are also pros and cons for purchasing them from banks. Make sure that you talk to a company that specializes in bidding for bonds and securities in order to figure out which is best for your financial situation. Click here to learn more about bid bonds.


Money Management Tips for Parents

My wife and I both had very successful careers when we had our first child, so I never expected to struggle financially after we had her. Things were great for a while, although raising a child was a bit more expensive than we expected. Unfortunately, I ended up getting laid off from my job and that is when money got really tight for us. The silver lining was that we really saved on child care expenses while I was laid off. While I am finally now working again, raising a child on one income was a struggle and we learned many budgeting and money management tips and tricks along the way that helped keep us afloat financially. I decided to create a blog to share those tips with other parents in similar tough situations. I hope I can help you end your financial struggle!


Latest Posts