No. of Recommendations: 3
The strangeness continues. Today's auction of 4-week T-bills resulted in an Investment Rate of 5.964%.
That's because people are afraid of "technical default" so they don't want to be in bills that cross that timeline. I, on the other hand, am very happy to be in bills that pay more due to others' fear. I doubled my allocation (I buy all the treasury bills each week when the rates are attractive) to these bills last week because I suspected that the fear would cause somewhat higher rates. In fact, I would be extremely happy if these DON'T mature on time and they pay me 5.964% for an extra few days while Congress wrangles a bit more.
