So the CUSIP alone does not tell us the original auction date or the original maturity date (and therefore the time length of the bill)?That particular T-Bill (CUSIP 912797GL5 with a maturity date of 09/05/2024) has been offered at auction three times: 1) in Sep 2023 as a 52-week T-Bill, 2) in Mar 2024 as a 26-wk T-Bill, and 3) in June 2024 as a 13-wk T-Bill. https://www.treasurydirect.gov/auctions ... =912797GL5 The ones you bought were originally purchased at auction in either Sep 2023 or Mar 2024.Thank you all so much for the crash course in bills!
I don't understand how one can buy a bill on the secondary market (for example, one that was auctioned by the govt at an earlier date) and still be able to hold it for 90 (or 91) days? In my example, I bought the bill on 6/6/24 that was sold at govt auction on 3/6/2024, and yet the bill I have has a maturity date of 9/5/2024. Maybe "maturity" doesn't mean what I think it means.
To keep things simple, assume you bought this T-Bill from the original owner (i.e., they bought at auction and not on the secondary market). It could have been purchased in either Sep 2023 for $94.823111 or Mar 2024 for $97.419139. You bought it from that owner at a price of $98.6909. So the owner made some money by selling it to you for more than they paid, and you will make money when it matures and are paid $100 by the US Treasury on Sep 5, 2024, 90 days after you bought it.
Fascinating stuff!
Statistics: Posted by josephny — Mon Jun 10, 2024 3:43 am — Replies 25 — Views 2393