User Guide Sections 211 Through 220 — TreasuryDirect (2024)

Learn More About The Auction Process

TreasuryDirect offers you the opportunity to purchase Treasury marketable securities through your secure, online account. TreasuryDirect accepts only noncompetitive bids for these securities. A noncompetitive bid simply means you’re willing to accept the rate, yield, or spread set at auction by the competitive bidding. It guarantees you’ll get the full amount of the security you want at the rate, yield, or spread determined at the auction. Treasury Inflation-Protected Security (TIPS) or Floating Rate Note (FRN) auctions can have negative yields or spreads. If you were to participate in one of these auctions and this occurred, you’d owe an amount larger than you’d receive back when the security matures.

To participate in a noncompetitive auction, go to BuyDirect_® and enter your purchase information. You may choose the security you wish to purchase from the list of available securities.

Bids for purchases must be submitted prior to the auction day noncompetitive cut-off time. Just check that you have placed your bid for the appropriate auction by verifying your Purchase Review and/or Purchase Confirmation. Securities are generally issued to your account within one week of the auction date.

You may go to Announcements, Data and Results to see a Tentative Auction Schedule of U.S. Treasury Securities.

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Learn More About Reinvesting Maturing Proceeds

You Can Schedule Reinvestments of Your Treasury marketable securities in TreasuryDirect

Reinvestment means using the redemption proceeds of a maturing Treasury marketable security to automatically purchase a new Treasury marketable security of the same type, if available. See specific details below.

Scheduling and Editing Reinvestments

When making your original purchase of a Treasury marketable security, you can schedule reinvestment of the security simply by completing the "Schedule Reinvestment" section on the BuyDirect® page. Bills can be scheduled for reinvestment for up to two years; other eligible Treasury marketable securities can be scheduled to reinvest one time. When your bill matures, the proceeds will be reinvested or used to purchase the next available security of the same type and term as the original purchase. When your note or bond matures, the proceeds will be reinvested or used to purchase the next available security of the same type and term that was originally assigned to that CUSIP number. (For example, when a 10-year note is re-opened for additional offerings, and you purchase a 9-year, 10-month note from one of those offerings, your funds will be reinvested into a 10-year note. If you purchase a 2-year note which was a re-opening of a 5-year note, due to the matching interest rates, payment dates, and maturity dates, your funds will be reinvested into a 5-year note.)

If you have an original or reinvested security which has no reinvestments scheduled, you can request reinvestment of the security prior to its maturity. Go to ManageDirect and select the Schedule Reinvestments text link. To cancel or change the number of scheduled reinvestments for a security, select the Edit Reinvestments text link.

You cannot schedule, edit, or cancel a reinvestment when the maturing security is in a closed book period, or when a noncompetitive bid for the replacement security is no longer accepted, whichever comes first.

Note: If there is no security available for reinvestment with an issue date that coincides with the maturity date, type, and term of the maturing security, as described above, the scheduled reinvestment will be canceled and the proceeds of the maturing security will be deposited to the maturity payment destination you previously selected.

Purchase limitations do not apply to securities issued through reinvestment.

For step-by-step instructions, see How do I reinvest the proceeds of a maturing security in my TreasuryDirect account?

Issuance of the New Security Through Reinvestment

When the new security is auctioned, the price of the security will be displayed in your Pending Purchases and Reinvestments, which can be accessed through ManageDirect.

Treasury Inflation-Protected Security (TIPS) or Floating Rate Note (FRN) auctions can have negative yields or spreads; if this occurs the price will be above par.

You may also owe additional funds if accrued interest is being charged, or backup withholding affected the amount of the maturing proceeds. If additional funds are due upon reinvestment, the funds will be debited from your primary bank, unless the original security associated with the reinvestment was purchased May 15, 2010, or after, with C of I funds. In this case, your C of I will be debited. Any refund due as a result of the reinvestment will be credited in the same manner.

If the amount available at the designated source is insufficient to pay the additional amount, the reinvestment will be canceled and the maturing proceeds will be deposited to your C of I.

Holding Period for the New Security

If the new security is not fully funded from the maturing security, it must be held 45 calendar days before it may be transferred. If the term of the security being purchased is less than 45 days, these restrictions will be enforced during the entire term of the security.

Transferring a Security with Scheduled Reinvestments

When a security is partially transferred, any scheduled reinvestments for the security will be canceled. When a security is fully transferred, scheduled reinvestments will be retained only if the security is transferred to another TreasuryDirect account with the same taxpayer identification number or to your minor linked account. If additional funds are needed to complete such reinvestments, the receiving account's primary bank will be debited.

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Page Title: BuyDirect_® for Notes/Bonds/TIPS/FRNs

What you can do on this page:

This BuyDirect page lets you request the purchase of a Treasury Note, Treasury Bond, TIPS, or FRN for your account, depending on the type of security chosen on the previous page. You may buy $10 million of each security type/term in a single auction. The purchase form is divided into four sections.

Section #1: Registration Information

- Select a registration from your registration list using the drop-down box. Your preferred registration appears first, then the remaining registrations appear in alphabetical order within each registration type. You can also add a new registration at this time without interrupting your purchase.

Section #2: Purchase Information

- Select your purchase from the listing of planned auctions, enter a purchase amount in increments of $100, and choose the source of funds (a bank or Zero-Percent C of I) you wish to use to pay for this purchase.

Section #3: Schedule Reinvestment

- You can choose to schedule a one-time reinvestment of the security. If you use your bank to make the original purchase, your primary bank will be debited to satisfy any payment due on reinvestment or credited for any refund. If you use C of I for the purchase, your C of I will be debited or credited. See Learn more about Reinvesting Maturing Proceeds.

Section #4: Payment Destination

- Select the payment destinations for your interest payments and last maturity payment. You may choose a bank or Zero-Percent C of I from the drop-down boxes.

You can also View recent auction results, Learn More about C of I , and Learn more about Purchase Limitations.

HELPFUL HINT

A review page and a confirmation page will display for this purchase.

Primary Actions

• Click "Submit" to review your purchase.
• Click "Cancel" to discontinue this purchase request.

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Page Title: BuyDirect_® for Notes/Bonds/TIPS/FRNs

What you can do on this page:

This BuyDirect page lets you purchase Treasury Notes, Treasury Bonds, TIPS, or FRNs for your account, depending on the type of security chosen on the previous page. You may buy $10 million of each security type/term in a single auction. The purchase form is divided into four sections.

Section #1: Entity Registration Information

All securities in an entity account carry a registration identical to the entity account name.

Section #2: Purchase Information

Select your purchase from the listing of planned auctions, enter a purchase amount in increments of $100, and choose the source of funds (a bank or Zero-Percent C of I) you wish to use to pay for your purchase.

Section #3: Schedule Reinvestment

You can choose to schedule a one-time reinvestment of the security. If you use your bank to make the original purchase, your primary bank will be debited to satisfy any payment due on reinvestment or credited for any refund. If you use C of I for the purchase, your C of I will be debited or credited. See Learn more about Reinvesting Maturing Proceeds.

Section #4: Payment Destination

Select the payment destinations for your interest payments and last maturity payment. You may choose a bank or Zero-Percent C of I from the drop-down boxes.

You can also View recent auction results, Learn more about C of I, and Learn more about Purchase Limitations.

HELPFUL HINT:

A review page and a confirmation page will display for this purchase.

Primary Actions

• Click "Submit" to review your purchase.
• Click "Cancel" to discontinue this purchase request.

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Page Title: BuyDirect_® for TIPS

What you can do on this page:

This BuyDirect page lets you purchase TIPS for your account. You may buy $10 million of each security type/term in a single auction. All of your Treasury marketable securities are available at a glance in your secure, online account. The purchase form is divided into four sections.

Section #1: Registration Information

- Select a registration from your registration list using the drop-down box. Your registrations appear in alphabetical order within each registration type. You can also add a new registration at this time without interrupting your purchase.

Section #2: Purchase Information

- Simply select the product type, enter a purchase amount in increments of $100, and choose the source of funds (a bank or Zero-Percent C of I) you wish to use to pay for your purchase.

Section #3: Purchase Frequency

- You can make a one-time purchase, up to five years in advance, or set up repeat purchases using common frequencies (e.g., monthly, bimonthly), or your own specific dates (e.g., a son's or daughter's birthday).

Just type in the purchase date(s) yourself or use our handy calendar tool to do it for you. Click on the calendar icon, and then click on a date in the pop-up calendar. TreasuryDirect automatically assists you by finding the next available auction date based upon the date you enter. It's that easy!

Section #4: Payment Destination

- Select the payment destination for your maturity and interest payments. You may choose a bank or Zero-Percent C of I from the drop-down box.

HELPFUL HINT

All purchase dates will be moved to the next available auction date according to current Treasury offerings.

Primary Actions

• Click "Select" to review your purchase.
• Click "Cancel" to discontinue the purchase and go to the My Account page.

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Page Title: BuyDirect_® for TIPS

What you can do on this page:

This BuyDirect page lets you purchase TIPS for your account. You may buy $10 million of each security type/term in a single auction. All of your Treasury marketable securities are available at a glance in your secure, online account. The purchase form is divided into four sections.

Section #1: Registration Information

-All securities in an entity account carry a registration identical to the entity account name.

Section #2: Purchase Information

- Simply select the product type, enter a purchase amount in increments of $100, and choose the source of funds (a bank or Zero-Percent C of I) you wish to use to pay for your purchase.

Section #3: Purchase Frequency

- You can make a one-time purchase, up to five years in advance, or set up repeat purchases using common frequencies (e.g., monthly, bimonthly), or your own specific dates.

Just type in the purchase date(s) yourself or use our handy calendar tool to do it for you. Click on the calendar icon, and then click on a date in the pop-up calendar. TreasuryDirect automatically assists you by finding the next available auction date based upon the date you enter. It's that easy!

Section #4: Payment Destination

- Select the payment destination for your maturity and interest payments. You may choose a bank or Zero-Percent C of I from the drop-down box.

HELPFUL HINT

All purchase dates will be moved to the next available auction date according to current Treasury offerings.

Primary Actions

• Click "Select" to review your purchase.
• Click "Cancel" to discontinue the purchase and go to the My Account page.

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Page Title: ManageDirect_® > Transfer Type

What you can do on this page:

You'll decide which type of transfer to choose for your Treasury marketable security. Internal Transfers move a security to another TreasuryDirect account holder. External Transfers move a security to an account held outside of TreasuryDirect with a bank or broker.

For some transfers, a page will display with a link to a paper form needed to complete your transaction. In this case, you must complete and mail the paper form according to its instructions. Your requested transfer will not be processed until we receive and approve your form.

Primary Actions

• Choose the radio button for Internal Transfer and click "Submit" to request an Internal Transfer.
• Choose the radio button for External Transfer and click "Submit" to access an External Transfer Form Request.
• Click "Cancel" to return to the previous page.

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