Is it possible to buy US Treasury Bonds (T-bills, T-notes) as European?

[brothermark83]

Is it possible to buy US Treasury Bonds (T-bills, T-notes) as European? I think I'm not interested in ETFs (like IDBT) as I would like to hold the bond until maturity to earn better interest on my USD. If I understand correctly you need SSN or EIN to buy on TreasuryDirect.

I'm also happy to entertain other ideas for getting yield on USD, maybe except stablecoins.

 

[blessingsbe]

@brothermark83 Yes. But you are not eligible for treasurydirect as european citizen. Just query your broker for e.g. an ISIN like US912796U641 on secondary market. There are brokers that won't offer it, but it should be possible.

 

[evietheturtle]

@blessingsbe The secondary market kinda sucks though, since you won't get it for the original price.

 

[kevin9626]

@evietheturtle

US912796U641

What is the problem with not getting bonds at their original price ?

 

[evietheturtle]

@kevin9626 Their future profits are mostly already priced in... So you don't really get the yield that the bond has.

 

[fire_starter]

@evietheturtle This is not really true.

Well its sort of is but new issue bonds future profits are already priced in as well so there is no real difference

Buying a new issue 2 year bond is pretty much equivalent of buying a 10 year bond that was issued 8 years ago with 2 years to maturity

Both will have the same YTM

 

[gelliott]

@blessingsbe How about eu bonds, where is the primary market for that?

 

[blessingsbe]

@gelliott There are no EU bonds. But for instance the BUND issuer has published the conditions for the primary market. If you are a bank or syndicate with big pockets, you are eligible for the primarymarket. https://www.deutsche-finanzagentur.de/en/federal-securities/issuances/primary-market

 

[user1213]

@brothermark83 Not too soon yet for bonds?

 

[brothermark83]

@user1213 Nothing wrong with 4% yield on cash you don't plan to deploy for a year. But papa Powell is the reason I'm not interested in IDBT as yields will go higher.

 

[evietheturtle]

@brothermark83 If that cash is not in your home currency those high % don't necessarily mean much.

 

[brothermark83]

@evietheturtle IMO too many factors to make such general statement. It fits my portfolio!

 

[evietheturtle]

@brothermark83 Not being your home / main currency definitely plays a big role in bonds. Otherwise people could enjoy those big % on all those foreign currencies, instead of getting those 0% EUR bonds.

IMO too many factors to make such general statement.

Yeah I kinda agree... but that goes in both directions. Those 4% are just not really 4% for you. Might be more, might be less... but it depends on many things.

 

[roberttt1]

@brothermark83 I'm trying to find something like TIPS, or short term bonds (3-6months) Hedged to euro. The 4% annual return -0.2% due to hedging seems like a perfect compliment to VWCE or VTI.

If you find what your are looking for send me a PM!