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US Treasury Bills Yield

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About This MicroSim

This visualization displays historical Treasury Bill (T-Bill) yields, showing how short-term government borrowing rates have changed over time. T-Bills are considered the safest investments available and serve as a benchmark for other interest rates in the economy.

Key Concepts

  • Treasury Bills: Short-term government securities with maturities of 4, 8, 13, 26, or 52 weeks
  • Yield: The return an investor receives, expressed as an annual percentage
  • Risk-Free Rate: T-Bills are considered risk-free since they're backed by the U.S. government

Lesson Plan

Learning Objectives

After completing this activity, students will be able to:

  1. Define Treasury Bills and explain their role in the financial system
  2. Analyze historical patterns in T-Bill yields
  3. Explain the relationship between T-Bill rates and Federal Reserve policy
  4. Compare T-Bill yields to other savings options

Target Audience

High school and college students learning about fixed-income investments.

Prerequisites

  • Basic understanding of interest rates
  • Familiarity with government borrowing

Activities

  1. Exploration: Identify periods of highest and lowest T-Bill yields
  2. Research: Compare current T-Bill rates to high-yield savings account rates
  3. Analysis: Explain why T-Bill yields rose dramatically in 2022-2023

Assessment

  • Explain why T-Bills are considered "risk-free"
  • Describe how the Federal Reserve influences T-Bill rates
  • Calculate the dollar return on a $10,000 T-Bill at current rates

References

  1. TreasuryDirect - Official U.S. Treasury securities
  2. Federal Reserve Economic Data - Historical T-Bill rates
  3. Investopedia - Treasury Bills - Educational resource