there's a new t- bill on the Block hello members super Savers and Bon course fans I hope you're healthy and well the treasury is holding its first auction ever of the brand new 6we t- bill which was actually in a previous life the 42-day or 6 week cash management bill or CNB today's video is for those of you who've asked for more information about this brand new t- bill here are the three topics that we'll be covering in today's video One what are the three primary differences between t bills and cash management bills two what are some important details to note about the brand new 6E t- Bill and three where can you buy the 6-e t- bill at the moment and what is the expected yield for next week's auction at the time of this taping as usual here's our front a video disclaimer for a detailed disclaimer please refer to the end of this video Let's dive in now folks what are the three primary differences between t bills and cash management bills cash management bills cm b s are basically t- bills pricing and interest on cnbs work similarly to that on T bills so let's say that you buy a CNB with a face value of $100 and your purchase price for that $100 face value CNB is $95 if you hold the cnmb to maturity this face value of $100 is what you would get back meaning that you earned $5 of interest on the CMB just like with a t- bill the three primary differences between t- bills and cmbs are one cnbs typically do not follow the regular t- Bill auction schedule cmbs were initially designed as a quick flexible way for the US Treasury to raise extra cash whenever it needed to they supplemented the regularly scheduled t- Bill auctions and enabled the US Treasury to flexibly meet its projected cash requirements for any given period of time say for example if they have an unexpected shortfall in tax receipts or before the government has to pay out a large sum of money to a third party for whatever reason and even better the US Treasury could issue cnbs on any business day with very short notice compare this to the regular auction schedule that the treasury has to plan well in advance and follow strictly when it issues t- bills notes and bonds what this means though is that the six- we t- bill can now be found on this tentative auction schedule of US Treasury Securities that the treasury updates every quarter which should be helpful for those of you who like to plan your auction purchases out ahead of time two cmbs usually do not have preset terms or maturities over the past several years we've seen everything from 3day cnbs all the way up to 154 day cnbs compare that to t- bills which come in predifined terms of 4 weeks 8 weeks 13 weeks 17 weeks 26 weeks and 52 weeks and yes now also 6 weeks Bond beginners folks please refer to module 4 video H for for more information on cash management Bills moving on to three cmbs can only be purchased at auction from select Brokers and not at all from treasury direct based on our experience you can generally buy cmbs at auction from Fidelity and eade most of the time compare that to t- bills which can be purchased via Fidelity eade Schwab Vanguard and other leading brokerage companies as well as from treasury direct more on this towards the end of the video video because there are a few other things we should cover first about the brand new 6E t- Bill what are some important details to note about the brand new 6we t- bill so the launch of the 6we t- bill is not really a surprise as I mentioned earlier it's essentially a Reincarnation of the 42-day or 6 we CNB which was first launched in June 2023 on a regular basis and as our Diamond nesc fans know the 42-day CNB is on the auction schedule every week in fact the treasury announced in their May 2024 quarterly refunding statement already the introduction of the six week Benchmark it seems money market funds other institutional investors as well as retail buyers like you and me like our T bills investor reception to the 6 we CNB has been strong and elevation to Benchmark status will further support demand so this announcement was made in May and the first auction of the six week t- bill is happening this month so it's taking about 9 months for the treasury to get their systems and internal operations ready for next week's 6E t- Bill launch if you are considering buying the 6E t- Bill do note that the announcement date auction date and settlement date will be the same as it was for the 42-day CNB meaning that the 6E t- bill will generally be announced on the Thursday of each week that's the first day that it will show up and be available for purchase from your br broker the auction happens the Tuesday after the announcement date and the settlement date is the Thursday after the announcement date so no change here which brings us nicely to the next section of today's video where can you buy the 6E t- bill at the moment and what is the expected yield for next week's auction at the time of this taping you can find the sixe t- bill on Fidelity's platform and at the time of this taping here is the expected yield just keep in mind that we are still a few days away from the actual auction date so this number will likely move a bit in the interim also note that you cannot turn on auto roll for the 6E T Bill if you select yes here you will get this error message telling you that the auto roll feature is unavailable for the treasury auction order you're attempting to place and this actually should not come as a surprise to those of us who tried turning on auto roll when the 17we T bill was first launched Auto rolling the 17 week didn't work either initially but if the 6E t- Bill follows the same trajectory as a 17we t- bill Auto roll should be available with Fidelity in a few months time the 6E t- bill is also available on Vanguard and E trade as you can see here at the moment though it does not appear to be listed on Schwab yet they only have The Usual Suspects that are on the weekly t- Bill schedule here's the three-month the six-month and the one-year t- Bill if any of the Schwab folks in our community end up finding it there over the next few days do leave a comment below and let your other Schwab friends here know and because the 6 week is now officially a t- bill and no longer a CNB it can also be purchased on Treasury direct and you can schedule your purchases several weeks in advance or turn on auto roll we tested it and the auto roll feature seems to be working properly on Treasury direct so if you do want to Auto roll your sixe t- bill purchases treasury direct seems to be the only place that you can do this right now and because I have very few people that I can gripe with about this do the treasury direct users amongst us think they'll ever fix that back button issue and yes I did hit the back button more often than I had expected and got this sad face every time in any case who's picking up some brand new 6E T bills at the upcoming auction drop us a comment below and let us know all right memb super Savers and Bon course fans I hope you enjoy this video and learn something new and as always if you want to learn more about bonds and how to build a stable predictable income stream in retirement especially while Bond Ys are quite attractive then check out this video here on our beginner and intermediate level Bond courses or come join our next Live member Q&A on Sunday February 23rd at 5:00 P p.m. eastern time 2 p.m. Pacific time we'll be diving deeper into this month's 2 five and seven-year t-note auctions I've linked all the details on our bond courses and YouTube super Super Saver membership below this video for your convenience and see you again very soon with more brand new wealth fing content for your financial Journey