What is the yield on a 6 month Treasury bill?
Basic Info
Basic Info
6 Month Treasury Bill Rate is at 5.17%, compared to 5.16% the previous market day and 4.78% last year.
| Bonds | Yield | Day |
|---|---|---|
| US 52W | 5.20 | -0.013% |
| US 2Y | 5.00 | -0.002% |
| US 3Y | 4.85 | -0.015% |
| US 5Y | 4.70 | -0.029% |
Treasury bonds have maturities of 20 or 30 years and pay interest every six months. In contrast, Treasury bills have much shorter maturities, from a few days to 52 weeks. Treasury bills are sold at a discount to their face value and do not pay interest before maturity.
To calculate yield, subtract the bill's purchase price from its face value and then divide the result by the bill's purchase price. Finally, multiply your answer by 100 to convert it to a percentage.
1 Year Treasury Rate is at 5.17%, compared to 5.14% the previous market day and 4.60% last year. This is higher than the long term average of 2.95%. The 1 Year Treasury Rate is the yield received for investing in a US government issued treasury security that has a maturity of 1 year.
Basic Info. 4 Week Treasury Bill Rate is at 5.28%, compared to 5.28% the previous market day and 3.29% last year. This is higher than the long term average of 1.41%.
To calculate the price, take 180 days and multiply by 1.5 to get 270. Then, divide by 360 to get 0.75, and subtract 100 minus 0.75. The answer is 99.25. Because you're buying a $1,000 Treasury bill instead of one for $100, multiply 99.25 by 10 to get the final price of $992.50.
Differences between investing in CDs and T-bills
If you live in a state with income taxes, and rates are similar for CDs and T-bills, then it makes sense to go with a T-bill. The amount you save on taxes will likely result in a higher payout from a T-bill than a CD. Another benefit of T-bills is their liquidity.
3 Month Treasury Bill Rate is at 5.25%, compared to 5.22% the previous market day and 5.04% last year. This is higher than the long term average of 4.19%. The 3 Month Treasury Bill Rate is the yield received for investing in a government issued treasury security that has a maturity of 3 months.
What happens when 6 month treasury bill matures?
When the bill matures, you are paid its face value. You can hold a bill until it matures or sell it before it matures.
Treasury bills have the shortest maturities, up to one year, making them the best choice for short-term investment. Treasury bonds, with maturities of 20 and 30 years, suit long-term investment needs. Treasury notes, with maturities ranging from 2 to 10 years, are suitable for intermediate-term investment.
- Discount Yield = [(10,000 - 9,950) / 10,000] x (360/90) = 0.02, or 2%
- Investment Yield = [(10,000 - $9,950) / $9,950] x (365/90) = 0.0204 rounded, or 2.04%
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.
The only interest payment to you occurs when your bill matures. At that time, you are paid the par amount (also called face value) of the bill. (Bills are typically sold at a discount from the par amount, and the difference between the purchase price and the par amount is your interest.)
| Compare the Best Online Brokers | ||
|---|---|---|
| Fidelity Investments | Best Overall and Best for Low Costs | 4.8 |
| TD Ameritrade | Best for Beginners and Best Mobile App | 4.5 |
| Tastytrade | Best for Options | 3.8 |
| Interactive Brokers | Best for Advanced Traders and Best for International Trading | 4.6 |
1 Month Treasury Rate is at 5.49%, compared to 5.49% the previous market day and 3.36% last year.
Range: 5.13 to 5.16.
Key Takeaways
Interest from Treasury bills (T-bills) is subject to federal income taxes but not state or local taxes.
The current yield for the 4-month T-bill is 5.44%.
How to buy a 3 month treasury bill?
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.
To buy, you must have a TreasuryDirect account. In TreasuryDirect, you may open an account and buy Treasury marketable securities for yourself (an individual registration). With an individual registration, you may also link your account to an account for a child under the age of 18.
You can buy newly issued Treasuries of various durations through your bank or brokerage, which may charge a commission, or you can buy them commission-free online for as little as $100 through the government's TreasuryDirect program.
You can hold Treasury bills until they mature or sell them before they mature. To sell a bill you hold in TreasuryDirect or Legacy TreasuryDirect, first transfer the bill to a bank, broker, or dealer, then ask the bank, broker, or dealer to sell the bill for you.
The minimum amount that you can purchase of any given Treasury Bill, Note, Bond, TIPS, or FRNs is $100.
