When are US government securities typically booked?

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For U.S. government securities, the typical settlement period is indeed one business day after the transaction date. This means that when a transaction involving U.S. government securities occurs, the actual booking or settlement of that transaction is finalized on the next business day. This relatively quick settlement process streamlines trading and ensures that the securities are transferred efficiently between parties.

Understanding the timing of transactions is important in managing cash flow and liquidity in financial markets. Other options, such as booking the securities on the same day or three business days later, reflect practices used in various other types of securities but do not apply to U.S. government securities. Additionally, booking transactions only on weekends does not align with standard operating procedures in financial markets, which adhere to business day conventions. Therefore, the correct timeframe for booking U.S. government securities is indeed the next business day following the transaction date.

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