Smart Bond Investing—Buying and Selling Bonds

Buying and Selling Bonds

 

Bonds are bought and sold in huge quantities in the U.S. and around the world. Some bonds are easier to buy and sell than others—but that doesn't stop investors from buying and selling all kinds of bonds virtually every second of every trading day.

 

The way you buy and sell bonds often depends on the type bond you select.

 

  • Treasury and savings bonds may be bought and sold through an account at a brokerage firm, or by dealing directly with the U.S. government. New issues of Treasury bills, notes and bonds—including TIPS—can be bought through a brokerage firm, or directly from the government through auctions at the U.S. Treasury Department's TreasuryDirect website.

     

  • Savings bonds can also be purchased from the government, or through banks, brokerages and many workplace payroll deduction programs

     

  • Corporate and municipal bonds may be purchased, like stock, through through full-service, discount or online brokers, as well as through investment and commercial banks. Once new-issue bonds have been priced and sold, they begin trading on the secondary market, where buying and selling is also handled by a broker. You will generally pay brokerage fees when buying or selling corporates and munis through a brokerage firm.

 

Bond price and trade data can be found at the FINRA’s Bond Market Data Center.

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    Comparing Bonds and Bond Funds
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    Buying and Selling Bond Funds