T bills — how is rate set
When I purchase Tbills at a certain interest rate and have them rollover once or twice- do they keep the original interest rate when renewed – or are they renewed at the current rate.
Terry Says
They renew at the current rate set at auction that week. You can track current rates at CNBC.com, under the “bonds” tab. Just scroll down to 3 or 6-month T-bills on the Friday before the auction, to get a good idea what the rate will be when the auction is held at noon on Monday.
