FAQs about the Withdrawal of 30-Year Bonds and 20-Year TIPS from Legacy Treasury Direct
- What changes have been made to the securities offered in Legacy Treasury Direct?
- I'm holding previously issued 30-year bonds and/or 20-year TIPS in my Legacy account. Will I be forced to sell or transfer them?
- If I want to buy 30-year bonds or 20-year TIPS, how can I do so?
- Why was this change made?
What changes have been made to Legacy Treasury Direct?
In January 2007, we stopped offering twenty-year TIPS and 30-year bonds in Legacy Treasury Direct. These maturities continue to be auctioned regularly, and are available either through TreasuryDirect or from government securities brokers and dealers.
I'm holding previously issued 30-year bonds and/or 20-year TIPS in my Legacy account. Will I be forced to sell or transfer them?
No. You can continue to hold these securities in your account until they reach maturity. But, maturing issues cannot be reinvested in Legacy Treasury Direct.
If I want to buy 30-year bonds or 20-year TIPS, how can I do so?
These securities can be purchased directly from the Treasury by opening a TreasuryDirect account. There are no fees to open or maintain a TreasuryDirect account, no matter how many securities you hold in your account. These securities, like all other marketable Treasury securities, can also be purchased through government securities brokers and dealers.
Why was this change made?
We intend to phase out the Legacy Treasury Direct system in the coming years. Since few Legacy Treasury Direct account holders were buying either of the two types of securities, withdrawing these maturities didn't affect most account holders. Fewer than 400 tenders were received for each issue in 2006. The Legacy system is being replaced by TreasuryDirect, through which individuals can buy and hold all Treasury's marketable issues available to the general public. Withdrawing the20-year TIPS and 30-year bonds permits Treasury to avoid the near- and long-term maintenance costs associated with offering these securities in a system that will be phased out sometime in the future.
