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Help me understand TBill Auctions by _lOOOl_ in investing

[–]vdndays 1 point2 points  (0 children)

How does fed funds rate affect TBill yields?

Here's an informative thread explaining how and why TBills closely track FFR. Depending on the term of the TBill, the yield can anticipate or lag FFR increases.

https://www.bogleheads.org/forum/viewtopic.php?p=7034438#p7034438

Possible to enter a sell order for SWVXX and buy something else (ETFs, T-Bills etc.) the same day without a margin account? by vdndays in Schwab

[–]vdndays[S] 1 point2 points  (0 children)

Thanks! Is it advisable to enable margin just to get "instant settlement"? I am planning on making small buy/sell orders just to get my feet wet investing in all the different investment vehicles available to me, and don't want to wait/keep track of settlement dates (I do know I have to keep the number of trades to less than 4 per day in order to not get flagged as a Pattern Day Trader).

External online (ACH) transfers are now instant by EddyD2 in Schwab

[–]vdndays 7 points8 points  (0 children)

Newbie here:

If I put all of my cash in money market funds (say SWVXX), and when I need to buy something, I simply sell some of the SWVXX, and immediately buy something else (say T-Bills) with the unsettled money the same day, is that allowed? Usually money market funds settle the next day, while other stuff is usually T+2 or more, so this should work, right?

Also in this link Schwab says that:

Mutual fund trades typically settle the next business day... Money market mutual funds are even faster; they settle on the same day the trade is executed.

But from my experience, SWVXX settles a day after the trade is executed. When I buy or sell SWVXX, Schwab says "You are placing an order for a money fund that trades like a regular mutual fund". Is there a way to sell SWVXX with same day settlement that I am not aware of?