So the auction results for the latest T-Bills are out! The latest 6 month T-Bills are issued at 3.9% yield per annum:      

Latest T-Bills at 3.9% yield (24 Nov 2022 Auction Results)

Diving deeper into the numbers. Out of an issue size of $4.8 billion, $11.9 billion worth of applications was received. This was 2.48 times subscribed. Non-competitive applications see 77.78% allotment. Which means that if you applied $10,000 non-competitive, you would get $7,700 T-Bills issued at 3.9% yield (rounded off to 100).

Why are interest rates for T-Bills going down?

Okay so the million dollar question – why are interest rates going down? I’ve set out the auction results for all the T-Bills since September 2022 below. You can see that the cut-off yield steadily increased from 2.99% in September to a peak of 4.19% on 27 October 2022....