Ask Terry Questions Treasury bills auction?

Treasury bills auction?

By Terry Savage on March 21, 2024 | Chicken Money

Hi Terry,
I am in Michigan City, IN and watch you on WGN. I took your advice and put 20K in iBonds at the 7%
(10 in my name and 10 in my wife’s) I have another 10K in “chicken money” and am interested in T bills. Obviously I have a treasury account but the term “auction” throws me a little off can you help me with this and is this still a wise move? Thank-you for your time, Tom

Terry Says

Every week the Treasury auctions hundreds of millions in Treasury bills. The big players in the auction are the global banks and financial institutions. The set the rate at auction, based on the outlook for inflation, Fed actions, troubles in the world, etc. And there is an “average rate” which is set at the auction. That’s what ordinary investors like you and I get! You don’t know the average rate until the auction is over, but it shouldn’t be much different from the previous week.
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