Authored by Mike Geraty

One year Treasury bills are issued every four weeks. The announcement is typically made on a Thursday, with the auction held the following Tuesday for settlement Thursday. The most recent auction took place on March 24th and $26 billion one-year bills were issued at 0.264%. Treasury bills are issued at a discount and mature at par. 

The math is straightforward. One percentage point of yield roughly equals one point of discount. If the yield on the year bill is 1.00%, then the price is very close to 99% of par value. Par value is $1,000, so the price would be $990.00. If the yield on the year bill is 5.00%, then the price of the bill would be approximately $950.00. If the yield on the year bill is 0.264%, then the price of the bill is roughly $997.50. 

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