I am looking at Bills tab on the site:


There is a 4-week security term with what appears to be a 4-week maturity date, with "high-rate" as high as 0.035%.

What does that mean? If I buy bills for say 10 000 USD, does that mean that the value will increase by 0.035% per 4 weeks?

That would mean 1.0035^(52/4) = 1.04646 => 4.6 % increase per year.

Is this correct way to calculate the value after a year, or 4 weeks?

What is strange though is that the 13, 26 and 52 weeks are pretty much on the same level. How come?

What am I missing/not understanding?


One detail you seem to be confused on is the way the amount works.

The $10,000 USD is the nominal amount - the amount payable to you on maturity. The "rate" or "yield" (what normal people might think of as "interest") is a function of the price, which fluctuates (but, obviously, is set at the time you purchase it).

  • Could you give me an example? I have 10 000 USD that I would like to invest. What can I expect on return after 4 weeks? Is it possible to continuesly reinvest these in 4-weeks bills? How would I have after 1 year?
    – mmm
    Jul 2 '14 at 10:12
  • There is no reasonably normal situation where an individual would want/need to invest in 4-week US Treasuries. What is your goal here? Jul 2 '14 at 10:25
  • I am just trying to understand what the High Rate column is for, and what to expect when buying different bills..
    – mmm
    Jul 2 '14 at 11:31

No, that is an annualized interest rate. Treasuries pay little, and short term Treasuries pay nearly nothing.

Here's the historical 4 week Treasury:

enter image description here

So, the interest rates across maturities are not equal unless if the yield curve is flat, right before a recession.

As an aside, short term Treasuries are rarely a good investment:

enter image description here

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.