6 Month Treasury Rate Market Daily Analysis: Daily Treasury Yield Curve Rates (2024)

FAQs

6 Month Treasury Rate Market Daily Analysis: Daily Treasury Yield Curve Rates? ›

6 Month Treasury Rate is at 5.40%, compared to 5.39% the previous market day and 4.98% last year. This is higher than the long term average of 2.83%. The 6 Month Treasury Bill Rate is the yield received for investing in a US government issued treasury security that has a maturity of 6 months.

Range: 5.35 to 5.39.

"The Daily Treasury Par Yield Curve Rates" are specific rates read from the daily Treasury par yield curve at the specific "constant maturity" indicated. Thus, a yield curve rate is the single yield at a specific point on the yield curve.

Yields are interpolated by the Treasury from the daily par yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid prices on the most recently auctioned Treasury securities in the over-the-counter market.

The yield curve is normally in a positive slope because shorter maturities typically yield less than longer maturities. When the yield curve is in a positive slope, investors might expect economic growth, which can lead to inflation and ultimately higher interest rates.

Treasury notes and Treasury bonds are fixed-income securities issued by the U.S. government but differ in maturity dates. Treasury notes have maturities of up to 10 years, while Treasury bonds have maturities of up to 30 years. Both notes and bonds pay interest every six months and the face value is at maturity.

Bonds are long-term securities that mature in 20 or 30 years. Notes are relatively short or medium-term securities that mature in 2, 3, 5, 7, or 10 years. Both bonds and notes pay interest every six months.

Although term premiums do change over time, most of the day-to-day movement in the yield curve reflects changes in market expectations of future short-term interest rates.

Differences between investing in CDs and T-bills

If you live in a state with income taxes, and rates are similar for CDs and T-bills, then it makes sense to go with a T-bill. The amount you save on taxes will likely result in a higher payout from a T-bill than a CD. Another benefit of T-bills is their liquidity.

If you believed that the Fed would continue to taper its QE program while holding short-term rates near- zero, the yield curve might continue to steepen. Thus, you might wish to “buy the curve” by buying short-term and selling long-term Treasury futures – a yield curve “steepener.”

What is the yield curve doing today? ›

Importance of the Yield Curve

The shape of the curve helps investors get a sense of the likely future course of interest rates. A normal upward-sloping curve means that long-term securities have a higher yield, whereas an inverted curve shows short-term securities have a higher yield.

What is the yield curve? The yield curve – also called the term structure of interest rates – shows the yield on bonds over different terms to maturity. The 'yield curve' is often used as a shorthand expression for the yield curve for government bonds.

There are three factors that can affect the shape of the Treasury yield curve ( r ∗ t , I P t , and M R P t ) and five factors that can affect the shape of the corporate yield curve ( r ∗ t , I P t , and M R P t , D R P t , and L P t ). The yield curve reflects the aggregation of the impacts of these factors.

Interest rates, inflation, and economic growth are among the biggest so-called macro factors that influence investor perception about the economy and the direction of Treasury yields.

The Treasury yield premium model by Jens H.E. Christensen and Glenn D. Rudebusch (CR) decomposes the nominal yield curve into three components: future short-term interest rate expectations, a term premium that measures bond investor aversion to the risk of holding longer-maturity bonds, and a model residual.

Basic Info. 10 Year Treasury Rate is at 4.65%, compared to 4.61% the previous market day and 3.40% last year.

12-month T Bill rates are at 5. 44%! The new 17-week Treasury Bill rate is 5.53%!

Go to your TreasuryDirect account. Choose the Buy Direct tab. Follow the prompts to choose the security you want, specify the amount you want to buy, and fill in the information required.