Treasury Direct listed interest rates
Treasury Direct displays the following current yields:
13-Week 912796CS6 06/29/2023 09/28/2023 5.180% 5.336%
26-Week 912796ZN2 06/29/2023 12/28/2023 5.215% 5.445%
4-Week 912797FZ5 06/27/2023 07/25/2023 5.010% 5.113%
The first interest rate column is titled “High Rate”.
The second interest rate column is titled “Investment Rate”.
What is the difference in those, given the “Investment Rate” is higher than the “High Rate”?
Thank you very much.
Terry Says
Since you get the interest on your T-bills “up front” — ie that amount is left in your bank account, and you can earn money on it, the Investment rate is the actual yield on the money that is withdrawn from your account (less money at same actual rate = higher investment yield).
