What's interesting is that until very recently, the interest rate on treasury bills were higher for shorter term ones versus longer term. That is, the 4 week ones had a higher interest rate compared to the 26 week ones. In fact, the daily treasury bill interest rate for May 26, 2023 was
5.78% for 4 weeks
5.30% for 8 weeks
5.16% for 13 weeks
5.28% for 17 weeks
5.18% for 26 weeks
4.98% for 52 weeks
This is the famous inverted curve. It’s generally been a predictor of recession. But this time it’s been inverted for over a year with no recession (yet).
One of the many baffling parts of the economy currently.
