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Email this4:16 am
August 30, 2023
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Norman1 said
zgic said
Does RBC Direct Investing Offer US Treasuries?
Am I better off moving from ISA to US Treasuries as they will offer better yields? USD ISA currently offers 3.40%
I don't know if RBC Direct Investing offers US treasury bonds in its bond inventory or not.
BMO InvestorLine does. One can get a bit better than 3.4% at BMO InvestorLine through US treasury bills 69 days or longer:
DaysPriceYield
(semi-annual)Yield
(annual)
US GOVT TBILL 29SEP261899.842 U3.143.165
US GOVT TBILL 01OCT262099.821 U3.2023.228
US TBILL RE-ISSUE 07/3 29OCT264899.547 U3.3843.413
US GOVT TBILL 10NOV266099.442 U3.3393.367
US GOVT TBILL 19NOV266999.345 U3.4113.44
US GOVT TBILL 27NOV267799.260 U3.4563.486
US GOVT TBILL 08DEC268899.161 U3.4323.461
US GOVT T.BILL 24DEC2610498.979 U3.5393.571
US GOVT TBILL 21JAN2713298.699 U3.5633.595
US GOVT TBILL 18FEB2716098.418 U3.5853.617
US GOVT TBILL 18MAR2718898.150 U3.5773.609
US GOVT TBILL 15APR2721697.862 U3.6093.641
US GOVT TBILL 13MAY2724497.571 U3.643.673
US GOVT TBILL 10JUN2727297.284 U3.6623.695
US GOVT TBILL 08JUL2730096.945 U3.7463.782
US GOVT TBILL 05AUG2732896.633 U3.7883.824
Thanks Norman1.
What is the commission to buy and sell US treasury bonds in BMO Investorline?
8:42 am
April 6, 2013
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Bond trading commissions at BMO InvestorLine vary. The commission, included in the price, is disclosed when one places the order. It is an undisclosed formula.
I've seen as low as $0 per $1,000 bond and high as $3 per bond. I tried one of the US treasury bills and the commission was 20¢ per US$1,000 treasury bill.
Those quotes and yields from BMO InvestorLine include the commission. In contrast, Scotia iTRADE bond quotes and yields don't include the commission. With Scotia iTRADE, one needs to add the $1 per $1,000 commission ($24.99 minimum, $250 maximum) and recalcuate the yield.
9:10 am
October 27, 2013
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As an FYI, when I used to buy bonds at Scotia iTrade, I always bought face value of $25k or more, so my rule of thumb would be a 0.1% drop in posted Ask yield due to the $1/1000 commission, and effectively nothing as I would almost always buy ~5 year terms.
Bonds are one area where the discount brokerages have not 'given in' yet on reduced, i.e. $0-10 commissions, perhaps because there is little to zero fintech competition. It is a bit of a PITA because I assume they make something off the Bid-Ask spread.
10:14 am
April 6, 2013
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The disclosed commission is in addition to the undisclosed bond desk markup/spread.
For a five-year bond, a $1 per $1,000 commission will reduce the yield to maturity around 0.1%/5 = 0.02%. The impact is quite substantial for a 60-day bond: around 0.1% / (60/365) = 0.6%.
That's likely why Scotia iTRADE was quietly not charging any commission on small buy orders of short term bonds.
Also, money in US treasury bills is not considered to be "on deposit". Maturing bills will trigger a capital disposition and foreign exchange capital gains/losses even when they are rolled over to newer US treasury bills.
