4 Week Treasury Bill Rate What You Need to Know

The 4-week Treasury Bill rate is a key indicator of the current state of the US economy. It's the interest rate at which the US government borrows money for short-term periods.

The 4-week Treasury Bill rate is typically lower than longer-term rates, such as the 52-week rate. This is because short-term rates are influenced by the Federal Reserve's monetary policies.

The rate is usually expressed as a percentage and can fluctuate daily based on market conditions.

The 4-week T-bill rate is the interest rate offered by the US Treasury Department on short-term government debt, specifically on Treasury bills that mature in four weeks. It's a key indicator of market expectations for future short-term interest rates.

This rate is determined by auctions, where the Treasury Department sells these short-term securities to investors. The rate is set by the highest accepted bid.

The 4-week T-bill rate is closely watched by economists and investors because it's seen as a reflection of the overall state of the economy. It's also used as a benchmark for other short-term interest rates.

A low 4-week T-bill rate can indicate that investors are seeking safe investments, while a high rate can suggest that investors are looking for higher returns.

The 4 week TBill rate is based on the daily secondary market quotation on the most recently auctioned Treasury Bills.

The Bank Discount rate is the rate at which a Bill is quoted in the secondary market, calculated based on the par value, amount of the discount, and a 360-day year.

Market quotations are obtained at approximately 3:30 PM each business day by the Federal Reserve Bank of New York.

The Coupon Equivalent, also called the Bond Equivalent, or the Investment Yield, is the bill's yield based on the purchase price, discount, and a 365- or 366-day year.

The Coupon Equivalent can be used to compare the yield on a discount bill to the yield on a nominal coupon bond that pays semiannual interest.