US Government T-Bills

[R33FAL]

Does anyone know of a route to invest money in US T-Bills for a period of 12 months? I note the 1-year treasury rate is 4.69% which is quite a bit more compelling than other saving routes in the UK. This would need to be GBP hedged. Quantum of around £1mn.

[R33FAL]

Figured it out for anyone interested. Turns out you can do it through Interactive Brokers, Barcap or HSBC... Gilts especially can be quite tax advantageous if you buy at discount to par.

[jjr1]

Thank you I will look into this.

[DaveA8]

Thanks, the big question is whether there is a with holding tax applied as a non US citizen. I was doing nicely with MLP's ( master Limited Partnerships) in oil and gas pipelines but since 1st Jan they applied a very nasty with holding tax on both income and upon sale.

Regards Treasuries, the consensus is that the $ still has some way to fall as the FED potentially complete hiking whilst other countries continue. If one can remove the tax risk and currency risk, it's a good rate but it can soon disappear and I hear a lot of "talking heads" speaking of peak USD

[LooneyTunes]

Out of interest, how are you doing the hedging and what’s that costing?

[LeoSayer]

it would be easier to invest via a hedged bond fund although that won't give you the fixed yield that you would get from buying individual bonds and holding to maturity.

[bitchstewie]

I assume you can't buy a hedged UK ETF or fund that holds these?

[R33FAL]

If you have to hedge the USD exposure I found out it it will cost around 1% of the return, so turns out it's easier to just invest directly in Gilts (the return will be about on par after the USD hedge). I want to avoid using an ETF/Fund to avoid paying "middle-man" fees but if depends on how much you want to invest. Let's see what the next UK bank rate decision brings, might give these an extra pop!

[WayOutWest]

In answer to bhstewie, yes, ishares offer a 1-3 year US Treasury ETF hedged to GBP, and only 0.1% TER. Ticker is IBTG. But I came to the same conclusion as mentioned above e.g. by the time you deduct the (hidden) hedging cost you may as well hold an equivalent gilt or gilt ETF.

[LeoSayer]

bhstewie said:

I assume you can't buy a hedged UK ETF or fund that holds these?

Here's one I found:
https://www.justetf.com/uk/etf-profile.html?query=...