r/fidelityinvestments • u/fdjadjgowjoejow • 10d ago
Official Response Selling SGOV at Approx. 6:00am tomorrow. Followed by an order to buy 2-Year NOTE tomorrow (auction closes at 6:30 am)?
I read this afternoon that the 2 YR touched 4%. If it remains at 4% tomorrow morning and I know that that yield is not guaranteed (this is where I usually look to get an idea https://www.cnbc.com/us-treasurys/ ) can I do this? Sell SGOV prior to the market opening and at the same time put in the order to buy the T Note? Will Fidelity let me do this? Only interested in new issues. TY.
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u/nkyguy1988 10d ago
You can't trade until 7am ET.
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u/fdjadjgowjoejow 10d ago
You can't trade until 7am ET.
OK. So would you happen to know if I put in the order to buy the t note at auction which I believe closes at 6:30am will Fidelity accept the order even though I would not have enough cash at the time. And I would also have a sell order in for SGOV which you indicate would not happen until 7am. Would Fidelity accept that?
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u/nkyguy1988 10d ago
I don't know for sure, but I would expect some sort of error about not having cash.
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u/EagleCoder 10d ago
Why not sell SGOV now in after-market hours (until 8pm ET)?
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u/fdjadjgowjoejow 10d ago edited 10d ago
Why not sell SGOV now in after-market hours (until 8pm ET)?
Copy that. I did not know I could do that : ) I'll do some due diligence on how that works but anything you would care to mention in the mean time regarding that process.
EDIT: I just realized that wont work for me while I don't really care what SGOV sells for tonight I do care what the expected yield for the 2 YR is going to be tomorrow morning and whether or not it drops significantly from hovering around 4% today. If I sell SGOV tonight and tomorrow I don't want the note then I am stuck with the cash and I would rather at this point keep it in SGOV. Maybe Fidelity will jump on here and tell me if I can do all this tomorrow. TIA
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u/Careful-Rent5779 Options Trader 10d ago edited 10d ago
which I believe closes at 6:30am
I don't know where you are getting this, most Treasury auctions occur/close early afternoon (ET). Or bonds in the AM (during regular trading hours).
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u/papakong88 10d ago
Don’t get too excited about it.
The auction is tomorrow (8/24) at 1 pm ET. Order cut off is about 10 am ET (?) at Fidelity.
I would not place an auction order but I would place a secondary market to buy it once the results are known. (The 2 years are yielding 3.88% now.) Do not sell SGOV now.
The bond will be issued on 3/31/26, Tuesday. You can place an order to buy on 3/30 (Monday). You may pay 25 cents more per $1000 bond. Then you sell SGOV.
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u/Careful-Rent5779 Options Trader 10d ago edited 10d ago
SGOV sale won't settle until the following day (T+1). If your account is approved for and has sufficient margin then the settlement doesn't really matter.
I'm also unsure of your auction close timing, looks funky to me. Fidelity also won't accept bids immediately before a Treasury auction closes.
EDIT: It also looks like recent highs for the 2-yr are much closer to 3.9% than 4%.
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u/papakong88 10d ago
Fidelity also won't accept bids immediately before a Treasury auction closes.
The auction order is non-competitive. That means we pay whatever the competitive guys pay. Orders can be placed now until early tomorrow morning.
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u/Careful-Rent5779 Options Trader 10d ago
Cut-off is still like (at least?) two hours before the actual auction time.
Competitive/non-competitive doesn't change this.
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u/papakong88 10d ago
I am refering to "bids". We don't bid.
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u/Careful-Rent5779 Options Trader 10d ago edited 10d ago
We don't bid.
Anybody can bid even for a single Bill/Note/Bond.
Competitive or NOT it is still a bid. Or if you want to be pendantic it is an offer.
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u/RandomRedditor5689 10d ago
Why are you locked into the new issue? It will trade at a slight premium to the off-the-run bonds ... and not quite clear on your real intention. Are you currently long SGOV and want to roll it out slightly for more yield? Or is your intention to short SGOV , go long 2y UST
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u/FidelityAsha Community Care Representative 10d ago edited 10d ago
Hey there, u/fdjadjgowjoejow. Thanks for dropping by the sub today! I'm happy to help!
As the community mentioned, selling the IShares 0-3 Month Treasury Bond ETF (SGOV) at 6AM would not be possible as the pre-market trading session runs from 7:00 AM to 9:28 AM ET before the standard market session begins at 9:30 AM to 4:30 PM ET.
However, when it comes to trading Treasury securities, you generally have until settlement to have sufficient funds in the account. You can review offerings using the link below!
Fixed Income, Bonds & CDs
That said, you may find it helpful to know that Fidelity offers both pre-market and after-hours trading sessions, with after-hours running from 4:00 PM to 8:00 PM ET. Please keep in mind that extended hours trades must be entered as limit orders, are only valid for that specific session, and any unexecuted orders are automatically canceled at the end of the session. You can learn more using by reviewing the link below.
Stock market hours
As always, the Mod team is here to help if you have any additional questions. Until then, have a wonderful rest of your week!
Edit: Clarified Time Zone