4 Week Treasury Bill Rate Market Daily Analysis: H.15 Selected Interest Rates (2024)

FAQs

What is the current interest rate on a 4 week T bill? ›

Basic Info

4 Week Treasury Bill Rate is at 5.28%, compared to 5.27% the previous market day and 5.08% last year.

Key Takeaways

Yield is the annual net profit that an investor earns on an investment. The interest rate is the percentage charged by a lender for a loan. The yield on new investments in debt of any kind reflects interest rates at the time they are issued.

Bills are sold at a discount. The discount rate is determined at auction. Bills pay interest only at maturity. The interest is equal to the face value minus the purchase price.

How can I buy a T-bill? You can buy Treasury bills directly from the government at TreasuryDirect.gov or through a brokerage account.

6 Month Treasury Bill Rate is at 5.17%, compared to 5.17% the previous market day and 5.23% last year. This is higher than the long term average of 4.49%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury bill that has a maturity of 6 months.

Choosing between a CD and Treasuries depends on how long of a term you want. For terms of one to six months, as well as 10 years, rates are close enough that Treasuries are the better pick. For terms of one to five years, CDs are currently paying more, and it's a large enough difference to give them the edge.

However, if interest rates rise, existing T-bills fall out of favor since their return is less than the market. T-bills have interest rate risk, which means there is a risk that existing bondholders might lose out on higher rates in the future.

To calculate yield, subtract the bill's purchase price from its face value and then divide the result by the bill's purchase price. Finally, multiply your answer by 100 to convert it to a percentage.

Treasury yields rise when fixed-income products become less desirable. Over time, central banks will adjust (raise) their interest rates to combat inflationary pressure.

How do T-bills work for dummies? ›

How do Treasury bills work? True T-bills generally do not make interest payments (called “coupon payments” in bond parlance). Instead, you buy them at a discount. In a hypothetical example, you might pay $950 today for a T-bill that will mature at $1,000, netting you a risk-free profit of $50.

New issues are sold at auction, and to participate, you must sign up with your broker or at TreasuryDirect.gov. Auctions happen every four weeks for 52-week T-bills and weekly for shorter-term T-bills. (See below for more info on buying T-bills in the secondary market).

Median Forecasts for 3-Month Treasury Bill Rate is at 4.16%, compared to 4.50% last quarter and 5.26% last year. This is higher than the long term average of 3.83%.

SINGAPORE — The latest six-month Treasury Bills (T-bills) issued on 16 April 2024 had a cut-off yield of 3.75 per cent per annum, with a cut-off price of 98.13. The total amount applied was S$16 billion, with a total amount allotted of S$6.3 billion.

To calculate the price, take 180 days and multiply by 1.5 to get 270. Then, divide by 360 to get 0.75, and subtract 100 minus 0.75. The answer is 99.25. Because you're buying a $1,000 Treasury bill instead of one for $100, multiply 99.25 by 10 to get the final price of $992.50.

Key Takeaways

Interest from Treasury bills (T-bills) is subject to federal income taxes but not state or local taxes. The interest income received in a year is recorded on Form 1099-INT. Investors can opt to have up to 50% of their Treasury bills' interest earnings automatically withheld.