The Treasury Bill Current Rate refers to the current market rates of Treasury Bills.
A Treasury Bill (T-Bill) is a form of marketable security which is issued directly by the U.S. Government. The maturity period of a Treasury Bill is one year or less.
They are similar to zero-coupon bonds in that the payment of interest is not received before maturity. Instead, the T-Bills are marketed at a discount on the face value in order to produce a positive YTM (Yield to Maturity). Treasury Bills are considered the most risk-free investment in the United States.
Treasury Bills are issued in the following forms:
- T-Bills with maturity date of 28 days (~1 month)
- T-Bills with maturity date of 91 days (~3 months)
- T-Bills with maturity date of 182 days (~6 months)
Treasury Bills are issued each Friday, following the weekly auctions held on Wednesday. The buying orders at Treasury Direct must be placed on Monday's auction before 11:30 a.m. Matured T-Bills are redeemed every Thursday. Financial Institutions and Banks (particularly Primary Dealers) buy the maximum number of Treasury Bills. Quotes (based on YTM) are available for buying and selling T-Bills on the Secondary Market.
Information on the Treasury Bill Current Rate:
| Bills |
Maturity Date |
Discount/Yield |
Discount/Yield Change |
Time |
| 3-Month |
09/13/2007 |
4.43 / 4.55 |
0.01 / -.001 |
06/15 |
| 6-Month |
12/13/2007 |
4.66 / 4.85 |
0.01 / -.001 |
06/15 |
The Treasury Bill Current Rate is calculated as the average of the bond equivalent rates of the 91-day T-Bills auctioned during the quarter.
The United States Treasury has launched a website, called TreasuryDirect, which allows individual investors to buy T-Bills and other types of Treasury Securities directly from the U.S. Government. With the help of TreasuryDirect, T-Bills can be bought online, and funds can be withdrawn and deposited to the personal bank accounts of the investors. T-Bills make it possible for investors to have more earnings on their savings.