Treasury Direct

Filed Under » ,
Dictionary Says

Definition of 'Treasury Direct'

The market where investors can purchase treasury securities directly from the federal government Treasury. This trading system eliminates brokers and dealers, and is conducted through Federal Reserve Banks. Tenders can be made either on a competitive or non-competitive basis.
Investopedia Says

Investopedia explains 'Treasury Direct'

In the competitive bidding process in a Treasury direct market, securities are sold to the highest bidder first, while the non-competitive bids are sold to every bidder at the average price set during the auction process. Further, the absence of brokers and dealers allows the Treasury direct market to be the cheapest market for investors to purchase Treasury securities.

The typical minimum investment in the Treasury direct market is $1,000.

Related Definitions

  • Dutch Auction

    1. A public offering auction structure in which the price of the offering is set after taking in all bids and determining the highest price at which the total offering can be sold. In ...
    Read More »
  • Auction Market

    A market in which buyers enter competitive bids and sellers enter competitive offers at the same time. The price a stock is traded represents the highest price that a buyer is willing to ...
    Read More »
  • Dealer Market

    A market where dealers are assigned for specific securities. The dealers create liquid markets by purchasing and selling against personal inventory.
    Read More »
    • Federal Reserve Bank

      The banks that carry out Fed operations, including controlling the money supply and regulating member banks. There are 12 District Feds, headquartered in Boston, New York, Philadelphia, ...
      Read More »
    • U.S. Treasury

      Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government ...
      Read More »
    • Treasury Bond - T-Bond

      A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest payments semi-annually and the income that holders receive ...
      Read More »
    • Treasury Bill - T-Bill

      A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million and ...
      Read More »
    • Tender

      1. To accept a formal offer, such as a takeover bid or tender offer. 2. A means of settlement in a financial transaction. 3. A bid to buy treasury bills. 4. A notice from a ...
      Read More »
    • Bureau Of Public Debt

      An agency of the United States Department of the Treasury that is responsible for borrowing funds for the federal government to use, maintaining accounts of the government's outstanding ...
      Read More »
    • Note Auction

      A formal bidding process that is scheduled on a regular basis by the U.S. Treasury. Currently there are 17 authorized securities dealers (primary dealers) that are obligated to bid on ...
      Read More »

Articles Of Interest

Partner Links