Money is weird right now. If you're looking at the 1 month treasury bill rate today, you’ve probably noticed that the "risk-free" return on your cash isn't quite the slam dunk it was a year ago. It's still decent, though. As of mid-January 2026, the yield on the 4-week Treasury bill (which is basically what we mean when we talk about the 1-month) is hanging around 3.72% on a constant maturity basis.
That number matters. It's the pulse of the economy’s shortest-term heartbeat.
Why the 1 month treasury bill rate today feels so stuck
Most people think the Federal Reserve just flips a switch and every interest rate moves in unison. That’s not how it works. While the Fed set the target range for the federal funds rate at 3.50% to 3.75% back in December, the market for 1-month bills is a different beast. It's driven by massive institutions—think money market funds and foreign central banks—who need a safe place to park billions of dollars for exactly 28 to 31 days.
Right now, we're seeing a weird tug-of-war.
On one side, you've got the Fed signaling they might cut rates again later in 2026. On the other side, the economy is refusing to roll over. Jobless claims just hit a seasonally adjusted 198,000, which is lower than almost any expert predicted. When people are working, they’re spending. When they’re spending, inflation stays sticky. And when inflation stays sticky, those "easy" rate cuts everyone was hoping for start to evaporate.
JoAnne Bianco, a strategist at BondBloxx, recently noted that there's "virtually no chance" of a cut at the upcoming January meeting. That keeps the 1 month treasury bill rate today anchored exactly where it is. It's not moving because the data isn't moving.
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The "One Big Beautiful Bill" factor
You might have heard about the One Big Beautiful Bill Act. It's the massive fiscal package currently working its way through the gears of Washington. It basically extends tax cuts while only trimming spending by a tiny margin. The Congressional Budget Office (CBO) is already warning this could add over $3 trillion to the national debt over the next decade.
Why does that matter for a 1-month bill?
Supply.
The Treasury Department, led by Secretary Scott Bessent, has indicated they’ll likely issue more short-term bills to fund the government's daily operations rather than locking in high rates on 10-year or 30-year bonds. When the government floods the market with more 1-month bills, the yield usually has to stay high enough to attract enough buyers. Honestly, we’re in a cycle where the government's need for cash is keeping your savings rate higher than it "should" be based on historical trends.
Breaking down the actual numbers (No fluff)
If you look at the auction results from earlier this week (January 13, 2026), the high rate for the 4-week bill came in at 3.550%, with an investment rate of 3.609%. However, in the secondary market—where these things trade like stocks—the yield has been slightly higher, pushing toward that 3.72% mark we saw on the Fed's H.15 report.
- 1-Month Yield: ~3.72%
- 3-Month Yield: ~3.67%
- 10-Year Yield: ~4.15%
Wait. Look at those numbers again. The 10-year is paying significantly more than the 1-month. This is a "normal" yield curve. For the last couple of years, we were living in an "inverted" world where short-term rates were higher than long-term ones. That's finally shifting. It means the market is starting to price in a future where the Fed has finished its "emergency" phase and we're settling into a new baseline.
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What you should actually do with this information
If you're sitting on a pile of cash in a "high-yield" savings account that's only paying you 3.2%, you're leaving money on the table. The 1 month treasury bill rate today is a benchmark for what your money is worth right now.
But there's a catch.
Buying bills directly through TreasuryDirect is a bit of a clunky experience—it looks like a website from 1998 because, well, it basically is. But it’s the only way to get the pure rate without a middleman taking a cut. If you want the liquidity, look at ultra-short-term ETFs like SGOV or BIL. They track these rates almost perfectly and you can sell them in seconds if you need the cash for a car repair or a sudden vacation.
Actionable steps for your cash:
- Check your bank's APY: If it starts with a 2 or a low 3, move it. The 1-month rate proves your cash is worth more than that.
- Ladder your entries: Don't dump everything into one maturity. If you think rates might go up because of the new fiscal spending, keep your duration short (like the 1-month).
- Watch the March meeting: Markets are only pricing in about a 21% chance of a rate cut in March. If that jumps to 50% or 60% based on new inflation data, the 1-month rate will drop before the Fed even makes an announcement.
The bottom line? The 1-month bill isn't the "get rich quick" scheme it was when rates were at 5%, but in a world of 4.1% inflation and weird geopolitical shifts, a guaranteed 3.7% is a solid defensive play. Just don't expect it to stay this way forever.