Broker Check


November 09, 2022

My stated purpose in sharing Capital Market Outlook posts like this one is simple: to either address the questions/topics everyone is asking & talking about, or bring to everyone’s attention topics everyone should be aware of and informed on, but frequently are not.

The topic of this update, T-Bills, definitely falls into the latter category.

By way of definition, a Treasury Bill (T-Bill) is a short-term debt obligation backed by the U.S. Treasury department with a maturity of one year or less.  As such, T-Bills have also historically been among the most “boring” securities, as extremely low risk typically comes extremely low returns.  True to form, as recently as a year ago T-Bill yields were close to 0%. [1]

Recently, however, T-Bill yields have increased.  Dramatically.  While interest rates on T-Bills change constantly, as I write this current T-Bill yields are around 4% for the three month, and 4.6-4.8% for the six month and one year T-Bill, which is the highest yield I have seen on ultra-short term maturity US treasuries in over 15 years.  The most “boring” asset class on earth has suddenly become (somewhat) exciting! 

Current T-Bill yields are more than twice as high as many “high yield” savings accounts I’ve seen, and T-Bills can be purchased with little or no commission, with no ongoing management fee, so investors receive the full interest rate undiminished by fee drag. 

While all the above is interesting, what makes T-Bills worthy of a Capital Market Update email isn’t just dramatically higher yields, but rather the unprecedented levels of cash being held by US households, reportedly over 800 billion(!) dollar as of April, and totaling almost 18 trillion (!!) in cash held by households and businesses across all commercial banks.  [2]

As a result, many investors are holding large cash balances they don’t want to deploy into “risk assets” like stocks or even longer-term bonds due to the double-digit negative returns in both, but would very much like to get a higher interest rate on than the 0%, 1%, 2% etc. they are getting from banks.

So in summary, if you have extra cash you want to keep safe and liquid, don’t need to spend in the next three, six, or twelve months, please let us know and we would be happy to discuss…T-Bills!

Very Truly Yours,

Jonathan Lonske        


(857) 328-1100

Windsor Private Wealth

Managing Director | Financial Advisor