From Friday, August 11, through Friday, September 1, this year, the equivalent yield on the 4-week US Treasury bill was calculated to be less than 1% in each trading day during that time. There is, of course, no single 4-week Treasury bill, and they dont pay any interest. You buy them at a discount and redeem them at par on maturity. The difference in the discounted price and par is the equivalent yield, blended among the several bill CUSIPs that make up the 4-week constant maturity proxy.
There really isnt any reason for bill yields to trade less than 1%, however. The Federal…

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