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

FAQs

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

4 Week Treasury Bill Rate (I:4WTBRNK)

4 Week Treasury Bill Rate is at 5.27%, compared to 5.26% the previous market day and 4.44% last year. This is higher than the long term average of 1.41%.

3 Month Treasury Bill Rate is at 5.25%, compared to 5.26% the previous market day and 5.09% last year.

H. 15(519) means the weekly statistical release designated as such, or any successor publication, published by the Board of Governors of the United States Federal Reserve System.

They are sold at a discount to face value, and the difference between the discounted price and face value is your return on investment. For example, if you buy a 12-week T-bill with a face value of $10,000 for $9,800, the difference of $200 is your return for holding the security for 12 weeks.

Face Value Redemption and Interest Rate

For example, suppose an investor purchases a 52-week T-bill with a face value of $1,000. The investor paid $975 upfront. The discount spread is $25. After the investor receives the $1,000 at the end of the 52 weeks, the interest rate earned is 2.56% (25 / 975 = 0.0256).

It means you'll accrue 0.15/12, or 0.0125, or 1.25% of the outstanding principal as interest every month. If left alone, your interest would be (1 + 0.15/12)¹² - 1. 0.16075451.... 16.08% effective annual rate.

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. The so-called "real" risk-free rate can be calculated by subtracting the current inflation rate from the yield of the Treasury bond matching your investment duration.

The United States Federal Reserve Statistical Release H. 15 is a weekly publication (with daily updates) of the Federal Reserve System of selected market interest rates. Many residential mortgage loans are indexed to the one-year treasury rate published in the H.

You can only buy T-bills in electronic form, either from a brokerage firm or directly from the government at TreasuryDirect.gov. (You can also buy Series I savings bonds through TreasuryDirect.gov). The most common maturity dates are four weeks, eight weeks, 13 weeks, 26 weeks and 52 weeks.

When to buy T-bills? ›

Buyers must place their order between the afternoon and the night before the auction date. T-bills with maturities of less than 52 weeks are auctioned weekly, while 52-week issues are auctioned monthly. A TreasuryDirect account functions just like a brokerage account.

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.

The H. 15 statistical release is a data publication containing daily interest rates for selected U.S. government and Federal Reserve series. Data includes the Effective Federal Funds Rate, 10-Year Treasury Constant Maturity Rate, and 3-Month Treasury Bill: Secondary Market Rate.

Constant maturity is the theoretical value of a U.S. Treasury that is based on recent values of auctioned U.S. Treasuries. The value is obtained by the U.S. Treasury on a daily basis through interpolation of the Treasury yield curve which, in turn, is based on closing bid-yields of actively-traded Treasury securities.

6 Month Treasury Bill Rate is at 5.16%, compared to 5.17% the previous market day and 4.85% 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.

Keep in mind that, while every term is currently yielding over 5% per year, that's per year. A four-week T-Bill will return 1/13th as much because it's 1/13th the length of a full-year (52-week) T-Bill. Choose the amount you want to spend, and if you want to re-invest your money after the T-Bill matures.

Median Forecasts for 3-Month Treasury Bill Rate is at 4.75%, compared to 5.01% last quarter and 5.40% last year. This is higher than the long term average of 3.82%.

Key Takeaways

Interest from Treasury bills (T-bills) is subject to federal income taxes but not state or local taxes.