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Issue / Term | Maturity Date | Yield |
3 Month Treasury |
5/20/2010 |
0.09% |
6 Month Treasury |
8/19/2010 |
0.19% |
12 Month Treasury |
2/10/2011 |
0.37% |
Treasury bills are 3 month, 6 month and 1 year obligations of the US government and are quoted on a yield basis, aand may be purchased at auction directly from the U.S. Treasury or through primary dealers (a series of investment banks). There is a very vibrant secondary market for all US Treasuries, ensuring liquidity (although the price will fall dramatically if yields rise). Therefore, Treasury Bills should only be viewed as a cash equivalent if you are prepared to hold the instrument through until maturity.
Due to a significant rush to safety in short duration Treasuries, yields have fallen dramatically, and these are not competitive with fully-taxable short term Certificates of Deposit or with online savings accounts.