Selling a Treasury Marketable Security — TreasuryDirect (2024)

FAQs

Can you sell Treasury notes on TreasuryDirect? ›

How do I sell a Treasury marketable security that is in my TreasuryDirect account? You cannot sell a Treasury marketable security directly from your TreasuryDirect account. To sell a Treasury marketable security that is in your TreasuryDirect account, you must transfer the security to a broker/dealer account.

"Marketable" means that you can transfer the security to someone else and you can sell the security before it matures (reaches the end of its term).

How can I sell my Treasury security before maturity? If you hold your security in TreasuryDirect you can transfer it to an account in the Commercial Book-Entry System. If you hold your security in the Commercial Book-Entry System, contact your broker, dealer, or financial institution or investment advisor.

Investors who hold a bond to maturity (when it becomes due) get back the face value or "par value" of the bond. But investors who sell a bond before it matures may get a far different amount. For example, if interest rates have risen since the bond was purchased, the bondholder may have to sell at a discount—below par.

You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks.

Treasury bonds can also be sold before their maturity in the secondary bond market. In other words, there is so much liquidity, meaning an ample amount of buyers and sellers, investors can easily sell their existing bonds if they need to sell their position.

The gain or loss of the sale is recorded on the income statement under the operating income segment as a line item denoted as "Gain (Loss) on Trading Securities." The gain or loss will impact the overall income statement and therefore the earnings of the company.

Marketable securities are liquid financial instruments that can be quickly converted into cash at a reasonable price. The liquidity of marketable securities comes from the fact that the maturities tend to be less than one year, and that the rates at which they can be bought or sold have little effect on prices.

Available-for-sale securities (AFS) are debt or equity securities purchased with the intent of selling before they reach maturity. Available-for-sale securities are reported at fair value. Unrealized gains and losses are included in accumulated other comprehensive income within the equity section of the balance sheet.

How do I cash my electronic bonds? Go to your TreasuryDirect account. Go to ManageDirect. Use the link for cashing securities.

How long does it take to get money from TreasuryDirect? ›

You just bought a security from the U.S. Treasury. Securities are generally issued to your account within two business days of the purchase date for savings bonds or within one week of the auction date for Bills, Notes, Bonds, FRNs, and TIPS.

Go to your TreasuryDirect account. Choose the Manage Direct tab. Identify the security or securities you want to transfer. Choose External Transfer.

Interest from Treasuries is generally taxable at the federal level, but not at the state level. Interest from munis is generally exempt from federal taxes, and if you live in the state where the bond was issued, the interest may also be exempt from state taxes.

By selling securities, the Fed attempts to raise rates, slow economic growth, and stem inflation. Unfortunately, contractionary economic periods like this also traditionally cause increases in unemployment.

You can hold a bond until it matures or sell it before it matures. EE Bonds, I Bonds, and HH Bonds are U.S. savings bonds. For information, see U.S. Savings Bonds.

You can hold Treasury bills until they mature or sell them before they mature. To sell a bill you hold in TreasuryDirect or Legacy TreasuryDirect, first transfer the bill to a bank, broker, or dealer, then ask the bank, broker, or dealer to sell the bill for you.

Both bonds and notes pay interest every six months. The interest rate for a particular security is set at the auction. The price for a bond or a note may be the face value (also called par value) or may be more or less than the face value. The price depends on the yield to maturity and the interest rate.

You should contact your bank directly for more information. For redemption or other information about U.S. savings bonds, visit the U.S. Treasury Department's web page, www.treasurydirect.gov, or contact their office directly by calling (844) 284-2676 (toll-free).