The yield on 91-day Treasury bills is the average discount rate. How it's used: The rate is used as an index for various variable rate loans, particularly Stafford and PLUS education loans. Lenders use such an index, which varies, to adjust interest rates as economic conditions change.
What does discount mean on a 91-day treasury bill?
At a discount means the note is sold at a discount from face value and then redeemed at maturity at the full face value. The difference between the discounted price and the face value determines the yield. The yield on 91-day Treasury bills is the average discount rate.
Is cash outperforming bonds this year?
Cash is outperforming bonds this year. A Fed pivot could change that. How do bonds perform one year after the Fed’s first interest-rate cut of a cycle? Fed could be the Grinch who ‘stole’ cash earning 5%. What a Powell pivot means for investors. This banking giant has been saying cash is king. Now it advises a switch to stocks.
