2min chapter

Forward Guidance cover image

The Debt Ceiling Approaches | Joseph Wang & Dominique Dwor-Frecaut

Forward Guidance

CHAPTER

The Benefits of Investing in Treasury Bills

One month treasury bills are trading at a very steep discount, they're yielding 5.6% while the rest of the curve yields 5% or lower. They tend to be bought by money market funds, less so today than the past but still pretty big holder. One month treasury yield is now higher than one month commercial paper rate from non-financial double-a rated borrowers. Like Microsoft, Apple, including some Chinese oil companies can borrow at a lower interest rate than the US government.

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