On issue day, the Treasury delivers securities to bidders who were successfully awarded securities in a particular auction. In exchange, Treasury charges the accounts of those bidders for payment of the securities. Issue days vary by security.
How Much Do I Pay?
Treasury Bills are issued at a discount or at par (face value) and are paid at par at maturity. The purchase price is listed on the auction results press release and is expressed as a price per hundred dollars.
Treasury Notes, Treasury Bonds, and Treasury Inflation-Protected Securities (TIPS) are issued with a stated interest rate applied to the par amount and have semiannual interest payments. In some cases, you may have to pay accrued interest. In the case of TIPS, the interest payments and the final payment at maturity are based on the inflation-adjusted principal value of the security. Floating Rate Notes are issued at par, discount, or premium with a stated spread and have quarterly interest payments.
How Are Securities Issued?
On issue day, payment is received and securities are simultaneously issued in an account previously specified by the bidder.