### Site Tools

treasury_direct_notes

## qna

### treasury bills vs. notes vs. bonds

Treasury Bills Treasury Notes Treasury Bonds
term short-term short or medium-term long-term
mature in one year or less 2, 3, 5, 7, or 10 years 20 or 30 years

### high rate vs. investment rate

For bills not more than one half-year to maturity

high_rate = ((100-P) / 100) * (360 / r)
investment_rate = ((100-P) / P) * (y / r)

Where P is the price, r is days to maturity, y is days in year (365 in normal year, 366 in leap year)

Ref:-

For example, on 2023-01-19, https://www.treasurydirect.gov/auctions/announcements-data-results/ showed

Security Term CUSIP Issue Date Maturity Date High Rate Investment Rate
4-week 912796Y60 01/24/2023 02/21/2023 4.480% 4.558%

Clicking on the CUSIP showed

CUSIP Security Type Security Term Auction Date Issue Date Maturity Date Price per $100 912796Y60 Bill 4-Week 01/19/2023 01/24/2023 02/21/2023 99.651556 $ ipython
Python 3.10.8 | packaged by conda-forge | (main, Nov 24 2022, 14:07:00) [MSC v.1916 64 bit (AMD64)]
IPython 8.7.0 -- An enhanced Interactive Python. Type '?' for help.

In [1]:
P = 99.651556; r = 28; y = 365

In [2]:
high_rate = ((100-P) / 100) * (360 / r)

In [3]:
high_rate
Out[3]:
0.04479994285714294

In [4]:
round(high_rate * 100, 3)
Out[4]:
4.48

In [5]:
investment_rate = ((100-P) / P) * (y / r)

In [6]:
investment_rate
Out[6]:
0.04558098850530179

In [7]:
round(investment_rate * 100, 3)
Out[7]:
4.558