UK Treasury bill - Treasury bill chat

UK Treasury bills are debt instruments issued by the UK’s Debt Management Office (DMO) to finance the Government’s operations. These securities are considered to be among the safest investments available, as they are issued and backed by the UK government. Since their creation in 1877 under the Treasury Bill Act, the UK government has never defaulted on these securities.

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This is great addition to the Freetrade offering.

Any plans to offer longer maturity bonds?

On the 28 days bonds. I note that it says we won’t get our money back instantly at the end of the 28 days. Does that mean we’ll effectively be out of the market for one week in every five? I’m hoping there is a way avoid this, i.e. automatically invest into the next auction without a gap.

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Thanks @Anders!

Longer maturity bonds are definitely in our thinking, but no firm plans to share as of right now. What length of maturity would you be most interested in?

And on your point about being out of the market; this won’t be the case provided your Treasury bill is set to reinvest. We’ll automatically queue an order for your reinvestment amount at maturity so that you’re continually earning yield. You can configure this according to your liquidity needs :+1:

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Can these be held in ISA?

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3 6 9 and 12 month

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ISA and SIPP eligibility is a complex area, and something we are looking at now that we have the first version of the product live. We’d love to be able to add these instruments to our tax wrapped portfolio.

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More than 12 months would be nice 3 to 5 years

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Good to know that these may be going into SIPPs. I am very keen for this to happen.

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Bring it on. If in either isa or sipp, I’d be bringing alot over to take advantage

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Finally got access today. Trying them out with £1k :grinning:

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1k per week to create a ladder? :stuck_out_tongue_closed_eyes:

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Per month you mean…
Let’s see. That’s quite a lot tied up and taxable at the end of the tax year!

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No, per week. The auctions are each Friday but then locked up for 28 days. I’m creating a ladder for rolling weekly maturities but just on a small scale to test it.

Tax treatment of them isn’t great if not in an isa or sipp.

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When or how does one access these?

Make sure you are on the latest version of the app. Though may take a tad longer to get it still.

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Look interesting but until tax-wrapped, I can’t really consider.

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Can you please introduce Gilts? Gilts have tax advantage while Treasury Bills do not.

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Are we going to show this on the desktop version