This week’s T-bill auction results – I got schooled


If you want to learn Excel, keep reading or Get 10 days of free unlimited access to for professional help and Excel Tutorials

Following up on my post of a few days ago, in which I wrote that I’d decided not to invest in the 4- and 13-week T-bill auctions this week, I present the results of yesterday’s and today’s auctions:

13-week T-bill (auction date: 8/20/2007): APY = 2.95%
4-week T-bill (auction date: 8/21/2007): APY = 4.96%

What’s perplexing is that the Daily Treasury Yield Curve for the 4-week bill dipped to 2.47% (!) just yesterday, August 20, 2007.

I was feeling good about my decision yesterday, but I was really surprised today.

I guess I’ve learned my lesson: for the 4-week T-bill, I might as well stick to laddering. I only lock up my money for a month’s time, and it seems the yield curve is not necessarily a good predictor of results.


Look Good at Work and Become Indispensable Become an Excel Pro and Impress Your Boss


4 Feedbacks on "This week’s T-bill auction results – I got schooled"


Why invest in the T-bill when you can earn that or more with HSBC?


Because T-bills are state-income tax exempt, and CA’s income tax is 9.6%. If I can get the same nominal return, the tax-effective yield is quite a bit higher for me with a T-bill.


Do you have that much money available to invest that it makes a difference whether or not you get 5.5% taxable or 4.96% state tax exempt over 13 weeks? It sounds like too much hassle for me.


No, at those rates it wouldn’t make a difference to me, but I’m averse to proliferating bank accounts, so since Treasury Direct works with any checking account, I prefer to use that instead with the one I have at my credit union.


Please Leave a Comment!

Please note: Comments may be moderated. It may take a while for them to show on the page.