Buy US Treasury bonds on Fidelity

The Fidelity interface is complicated, here a description of the steps necessary to buy newly issued US Treasury bonds at the next available auction. Currently auctions are every Thursday.

• Login to fidelity
• Click on “News & Research”, “Fixed income, Bonds and CDs”
• Click on “New Issues”, expand “Treasury”
• Look if any of the Treasury bonds have a high “Expected yield” and a suitable duration
• If not, wait a week and try again
• If yes, click on “Trade”
• Select the account, in the quantity put how many thousand dollars you would like to buy. So 3 means $3000. Set AutoRoll to No.
• Wait a few days until the auction is held and you will get an email from Fidelity notifying you what is the final yield.
• Wait until maturity to get the full amount of interest, however, if you need to sell beforehand, Fidelity allows to sell them most probably without a loss, just a lower interest rate.

Note on ROTH IRA

If you buy these bonds on a ROTH IRA, the interest is tax free and can be invested in the future.