Us Treasury Bill Rates Historical Trends and Insights

Treasury bill rates have fluctuated significantly over the years, influenced by factors like inflation and interest rates. The average annual rate on 3-month Treasury bills has ranged from 0.05% in 2020 to 15.26% in 1981.

Historically, Treasury bill rates have been shaped by economic conditions. During the 1980s, high inflation led to higher interest rates, with the 3-month rate peaking in 1981.

A notable trend is the decline in Treasury bill rates since the 2008 financial crisis. The 3-month rate dropped to 0.05% in 2020, a significant decrease from its pre-crisis level.

Take a look at this: Us Treasury 3 Month Bill Etf

The historical data for US Treasury bill rates is a treasure trove of information for investors and financial analysts.

The data shows a range of rates from 4.13% to 4.30% over the course of several months.

One notable trend is the fluctuation in rates throughout January and February 2025, with the highest rate recorded on February 12, 2025 at 4.30%.

The lowest rate during this period was 4.13% on January 27, 2025.

A closer look at the data reveals some interesting patterns. For example, the rate increased steadily from January 10, 2025 to January 13, 2025, only to decrease slightly on January 14, 2025.

Here is a summary of the highest and lowest rates recorded in January and February 2025:

These fluctuations highlight the importance of staying up-to-date with market trends and adjusting investment strategies accordingly.

The Federal Reserve sets the federal funds rate, which is the interest rate at which banks and other depository institutions lend and borrow money from each other overnight. As of December 27, 2024, the federal funds (effective) rate was 4.33.

The prime rate, which is the rate at which banks lend to their most creditworthy customers, was 7.50 as of December 27, 2024. This rate is used as a base rate for short-term business loans.

Treasury bills (T-bills) are short-term government securities that are sold at a discount to their face value. The Bank Discount rate, which is the rate at which a T-bill is quoted in the secondary market, is based on the par value, amount of the discount, and a 360-day year. As of December 27, 2024, the 4-week T-bill rate was 4.25.

The Coupon Equivalent, also known as the Bond Equivalent or Investment Yield, is the yield on a T-bill based on the purchase price, discount, and a 365- or 366-day year. This rate can be used to compare the yield on a discount bill to the yield on a nominal coupon bond that pays semiannual interest.

Here are some key interest rates as of December 27, 2024:

The 30-year Treasury constant maturity series was discontinued on February 18, 2002, and reintroduced on February 9, 2006.