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 did you quit offering the 20-year TIPS and 30-year bond in Legacy Treasury Direct?
(NOTE: Legacy Treasury Direct is being phased out.)
What changes have been made to the securities offered in *Legacy Treasury Direct?
In January 2007, we stopped offering 20-year TIPS and 30-year bonds in *Legacy Treasury Direct. (The 30-year bond, as well as a 30-year TIPS, are available in TreasuryDirect and from government securities brokers and dealers. We no longer offer the 20-year TIPS. In November 2009, we announced we were replacing it with the 30-year TIPS.)
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?
You can buy a 30-year bond 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. The 30-year bond, like all other marketable Treasury securities, can also be purchased through government securities brokers and dealers. We no longer offer the 20-year TIPS. We replaced it with the 30-year TIPS.
Why did you quit offering the 20-year TIPS and 30-year bond in *Legacy Treasury Direct?
We intend to phase out the Legacy Treasury Direct system. 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 the 20-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.
*Legacy Treasury Direct is being phased out.
