Thursday, February 15, 2007

4-week T-bill up to 5.23%

I have a standing order with TreasuryDirect to roll over my maturing 4-week T-bills every four weeks. Yesterday was the weekly T-bill auction that happened to be on my 4-week cycle. A month ago the investment yield was 4.98%. This week it was 5.23%, which is probably the best return you could get for cash that is tied up for only four weeks. Alas, in four weeks my rate will reset to whatever the auction results are that particular week.

Note: A 4-week T-bill investment rate of 5.23% is equivalent to a CD with an APY of 5.36%, but try finding a 1-month CD, let alone at that rate.

Incidentally, the investment rate this week for the 3-month T-bill was 5.16% and for the 6-month T-bill was also 5.16%.

You can view the recent history of T-bill auction results on the TreasuryDirect web site.

-- Jack Krupansky

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