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You can buy Treasury bills, notes, and bonds directly through TreasuryDirect by opening an account, choosing an available auction in Buy Direct, entering your purchase amount and funding source, and submitting a noncompetitive bid. You accept the auction’s rate or yield rather than setting one yourself. The minimum purchase is $100, in $100 increments, and the maximum noncompetitive bid through TreasuryDirect is $10 million.
What to know before you place an order
- The auction sets the rate or yield. It is not known when you schedule a purchase.
- TreasuryDirect purchases are noncompetitive bids. You agree to accept the auction result; you cannot specify a yield or rate through this account.
- Plan for limited early access. Most newly purchased marketable securities must be held for 45 calendar days before transfer or sale. To sell a TreasuryDirect holding, you must first transfer it to a broker or dealer.
These are auctioned marketable securities held electronically in your account. TreasuryDirect says there is no charge to open or manage an account. Its broad eligibility information covers individuals and certain entities; check the current TreasuryDirect account information and account-opening flow for your specific eligibility and requirements.
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Choose the security that fits your timing and cash-flow needs
Bills, notes, and bonds differ in how long they run and how they pay interest. Compare the term, payment pattern, auction price and yield, and whether you might need to sell before maturity. The auction result is not available when you submit your order.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minute| Security | What to compare |
|---|---|
| Treasury bills | Choose a bill auction by its term and maturity date. Bills can be scheduled for reinvestment into another bill with the same term. |
| Treasury notes | TreasuryDirect lists 2-, 3-, 5-, 7-, and 10-year terms. Notes pay fixed interest every six months until maturity. |
| Treasury bonds | Compare the maturity date and cash-flow timing shown for the specific auction; the cited purchase guidance does not specify bond terms or payment frequency. |
See TreasuryDirect’s Treasury notes description for note terms and payment frequency. In Buy Direct, an auction is tied to a particular security type and CUSIP. It may be an original issue or a reopening of an existing security.
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How to buy at auction in TreasuryDirect
- Open an account. Complete the current TreasuryDirect account-opening process. Account holders’ securities are electronic book-entry holdings.
- Go to Buy Direct and choose an auction. Select the security type and available auction that match your intended term and maturity.
- Enter the amount. The minimum is $100; purchases must be in $100 increments. The maximum noncompetitive bid through TreasuryDirect is $10 million.
- Select the funding source. Choose an available bank account or Certificate of Indebtedness (C of I) as shown in the purchase flow.
- Submit the noncompetitive bid. By submitting, you accept the rate, yield, or discount margin determined by the auction. TreasuryDirect says noncompetitive bidders are guaranteed the security and amount requested.
- Check the result and funds. TreasuryDirect says auction results are available after 5 p.m. Eastern on auction day. Review pending purchases for the auction price and any accrued interest, and make sure the selected funding source has enough money by the issue date.
Follow TreasuryDirect’s Buy Direct user guide for the account’s current purchase flow. Its marketable security buying guidance explains bid amounts, auction results, funding, and holding rules.
What noncompetitive bidding means
A noncompetitive bid lets you request a specified security and amount without choosing the auction yield. You accept the auction’s result. A competitive bid, by contrast, specifies the rate or yield the bidder will accept; it must be placed through a bank, broker, or dealer, not directly through TreasuryDirect. If a competitive bid is too high, it may receive no award or only a partial award.
Holding, transferring, and selling before maturity
Most new TreasuryDirect marketable securities must be held for at least 45 calendar days before you can transfer or sell them. The holding period does not apply to a new security acquired through reinvestment of a maturing security. TreasuryDirect does not provide a direct sell-from-account route: to sell a holding, transfer it to a broker or dealer. Consider this restriction before choosing TreasuryDirect if you may need to access the investment early.
See TreasuryDirect’s How Do I…? guidance for its transfer-to-broker-or-dealer selling path.
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How reinvestment works
TreasuryDirect allows reinvestment of bills, notes, bonds, and floating rate notes (FRNs), but not Treasury Inflation-Protected Securities (TIPS). A replacement must be the same security type. Bills reinvest into a bill with the same term; an FRN reinvests into a two-year FRN. A replacement note or bond can have a different term because of unscheduled reopenings.
- You can schedule reinvestment when placing the original order or up to four business days before maturity.
- If no appropriate security is being issued, TreasuryDirect cancels the reinvestment and sends the proceeds to the designated bank account or C of I.
- If the replacement costs more than the maturing proceeds—for example, because of accrued interest or tax withholding—you must have enough additional funds available before the issue date. Otherwise, TreasuryDirect may cancel the reinvestment.
- A reinvestment funded fully by maturing proceeds is exempt from the 45-day holding period. If you add funds to buy the replacement, the new security must be held for 45 calendar days before sale or transfer.
Check the current TreasuryDirect reinvestment rules before scheduling, especially if you expect to add money or need the proceeds on a particular date.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Possible accrued interest and payment timing
Check the pending purchase details for the final price and any accrued interest. If there is a gap between a security’s dated date and issue date, accrued interest may be included in the price; TreasuryDirect says that amount is returned with the first regular interest payment. Make sure your selected funding source can cover the amount due by the issue date.
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