In the intricate world of finance, understanding the dynamics of Treasury yields is crucial for investors, policymakers, and anyone looking to decode the economic pulse.
Treasury securities are considered one of the safest investments because they are backed by the full faith and credit of the US government. This makes them less risky compared to stocks.
US Treasury Bills, or T-bills, are short-term debt securities issued by the United States Department of the Treasury. They are considered one of the safest investments because they are backed by the "full faith and credit" of the U.S. government. T-bills are typically issued with maturities of 4, 8, 13, 26, or 52 weeks.
U.S Treasury Yield in 2023:
The 3 Month Treasury Bill Rate as of October 5, 2023, is 5.34%, compared to 5.34% the previous day and 3.33% last year. This rate is higher than the long-term average of 4.18%. The 3 Month Treasury Bill Rate represents the yield for investing in a government-issued treasury security with a 3-month maturity.
Historically, it remained near 0% from 2009-2015 due to the Federal Reserve keeping benchmark rates at 0 after the Great Recession. The current rate is part of the shorter end of the yield curve, providing insight into the overall U.S. economy. The frequency of updates is daily, and the source is the Federal Reserve.
The long-term average growth rate is 116.3%, emphasizing the recent upward trend in rates.
Congress Members Trading:
One Congress member who extensively traded U.S. Treasury Bills this year was Senator Tom Carper. The Delaware Congressman reported purchases of the municipal security by his spouse from September 20 to 25. In total, these purchases were valued to a maximum $315,000 in value. Additionally, the Senator’s spouse also sold the bills from Sept 21 to 26 for around the same value. These trades also garner further interest considering Sen. Carper serves on the Senate Committee on Finance, in addition to three other Committees.
Prior to Tom Carper, Representative Maria Elvira Salazar’s spouse bought up $2 million worth of bills in early September. These two transactions were disclosed in an October 5 filing; the House member’s first trade disclosure since June. Other Congress members who bought Treasury bills earlier this year included Rep. Pete Sessions, Rep. Michael McCaul, Rep. Dan Bishop, among others.