According to treasury.gov, the "coupon equivalent" for a 1 month (4 weeks) T-Bill issued today is 0.99%.

I happened to have purchased a 1 month T-Bill today for $99.9246. By my calculation that means that the return will be .075% (.0754/99.9246) for the month. That leads me to believe that quoted coupon equivalent of 0.99% is actually annualized despite the fact that the T-Bill is only 1 month.

Is that correct?

  • Yes. I hope you weren't expecting nearly a full 1% for one month? Commented Sep 12, 2017 at 23:16
  • Given that the 30 yr is below 3%, no. But I did think it was odd to annualize it.
    – cph2117
    Commented Sep 12, 2017 at 23:45

1 Answer 1


Annualizing offers a simpler way to compare 1 mo, 6 mo, and 1 yr treasuries. "Do I want to invest for 6 months to get 1%/yr or a year to get 1.1%?" That kind of choice.

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