T-Bills yields have been on a roller-coaster ride recently. From as high as 4.07% in September 2023. T-Bills yields then dropped as low as 3.54% in early Feb. Since then – T-Bills yields have started to stabilise around the 3.80% range. From 3.78% the previous auction, up to 3.80% this auction. However – demand for T-Bills has risen to record highs for all of 2023/2024, so the fact that T-Bills yields did not drop materially is interesting. So I wanted to take a look at the numbers, to understand what’s driving the move in T-Bills yields? 6-month T-Bills yields jump to 3.80% (27 March 2024 Auction Results) I’ve extracted the cut-off yield for the latest T-Bills auction below. This round of 6-month T-Bills are issued at 3.80% yield (a small increase from 3.78% the previous auction). This is in line with the 3.80% yield from 2 auctions ago. I’ve charted this in graph form below. T-Bills yields are well off the Feb lows, and comfortably back into the 2023 range. Demand for T-Bills jumps...