Did anyone figure out how to buy US T-bills? Or is it a untapped niche that is waiting for its own fintech company?

[geethanx2000]

As the title says

Additional context:

1. Non-us citizen, but as a japan resident.

 

[resjudicata]

@geethanx2000 Wasn’t there an announcement for a US short bond ETF a few days ago ?

 

[leehop71]

@geethanx2000 I haven’t find any Japan based brokerages that support purchase of treasury bills through auction. I just buy 30-45 day treasury bills using my US brokerage account and sometime treasury direct.

https://www.treasurydirect.gov/auctions/upcoming/

As non-US citizen and resident, can you open US brokerage account?

 

[primarymay]

@leehop71 You need a social security number for treasury direct, so basically you need to be American or a resident.

 

[leehop71]

@primarymay Do they accept TIN?

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin

Edit: Got curious, entity account might be an option https://www.treasurydirect.gov/indiv/help/treasurydirect-help/user-guide/291-300/#292

 

[primarymay]

@leehop71 It's probably not worth the hassle. You can buy them in yen terms on the secondary market here, or just use a domestic or foreign ETF.

 

[leehop71]

@primarymay Bond ETF are not worth it right now. They are not yielding better than treasuries and their price dropping much more.

I am actually doing tax loss harvesting by slowly selling bond ETFs and buying treasury bills. Next year will roll back into bond ETFs.

 

[primarymay]

@leehop71 Bond ETFs can consist of only treasuries, so I'm unsure about your statement. They will continue to trend down as yields rise, and the funds buys new issues. However, it's no different then buying an holding treasuries. The NAV of the bond fund is not that important, as the yield/coupon is what matters.

If you have USD it's an excellent time to lock in. If you have yen, the currency risk makes it very risky.

 

[geethanx2000]

@primarymay yes , but what if i want just 1 year t-bills? The shortest I see is 3 year ones?

 

[ethzz]

@geethanx2000 I've never been into bonds, even retired at 71. But it doesn't look like things could get much worse for them (the bottom?). So I broke down and bought some TLT a couple days ago, a first for me (US account). I suppose there may be one more rate hike, and if so, I may spring for a little more, or for something similar.

 

[marie0628]

@geethanx2000 Following this thread.. I worry about currency swings, but I guess no matter what you're invested in.. it's an issue in some capacity.

 

[benjohnson1966]

@geethanx2000 Using an IBSJ account, i'm unable to trade SGOV for some reason (the ishares 0-3month bills), but I can buy SHV (0-12month bills). probably good enough if you're trying to hold USD and get some yield on it. Currently sitting at ~4months average duration, 5.45% average yield to maturity. 0.15% management fees.

https://www.ishares.com/us/products/239466/ishares-short-treasury-bond-etf

 

[primarymay]

@benjohnson1966 There are many TYO options but Rakuten has igov, if, shy, tlt, tlh, , vglt, blv, bnd, Flot, tip and a whole raft of individual bonds.

 

[geethanx2000]

@primarymay yes , but what if i want just 1 year t-bills? The shortest I see is 3 year ones?

 

[primarymay]

@geethanx2000 Check out TYO 2093.

 

[geethanx2000]

@primarymay what is this? 上場ＴＲ米債０２ラダー (2093)?

 

[primarymay]

@geethanx2000 Why does it say when you run it through Deep-L or Google translate?

 

[lambofgod83]

@primarymay Whats the eli5?

 

[primarymay]

@lambofgod83 Its as the label says, laddered 0-2 year treasuries. So it fits your requirements.laddering means buying a new issue as the old issue matures. The average age is 1 year.

 

[primarymay]

@geethanx2000 Under foreign bonds Rakuten has a raft of notes and strips...did you all check there?