If you’re checking the 3 month t bill rate today, you’re probably seeing a number right around 3.57% or maybe 3.67% depending on which bank's terminal you're staring at. Honestly, it’s a bit of a weird time to be a cash-heavy investor. We aren’t in that "easy money" era of 5% yields anymore, but we aren't exactly back to the zero-interest basement either.
The market is basically in this awkward middle ground where everyone is trying to guess how fast the Fed will keep cutting.
Yesterday, the secondary market rate was sitting at 3.57% (discount basis), while the investment basis—the one that actually tells you what you're making relative to your cash—was closer to 3.67%. It’s a small gap, but when you’re moving six or seven figures, those basis points start to feel like real money.
The Reality of the 3 month t bill rate today
A lot of people think these rates are just a "set it and forget it" situation. They aren't.
Right now, the 3-month yield is reflecting a very specific tension in the economy. On one hand, the Federal Reserve has been leaning into rate cuts because the labor market is looking a bit soft. On the other hand, inflation is still being a total pest. It’s hanging out above that 2% target, making the Fed cautious about cutting too deep, too fast.
When you look at the 3 month t bill rate today, you're seeing a snapshot of a "wait and see" approach.
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Why the Rates Keep Jumping Around
If you’ve been tracking the daily moves, you’ve noticed it’s not a straight line. Just a few days ago, we were looking at 3.52%. Then it nudged up. Why? It's usually one of three things:
- Auction Supply: The Treasury just finished an auction on January 12 with a high discount rate of 3.54%. When the government floods the market with more "paper" (bills), the price can dip and the yield can pop up.
- Fed Speak: Every time a Fed Governor gives a speech about "resilient growth," the market freaks out a little and bets that rates will stay "higher for longer."
- Liquidity Needs: Sometimes big institutional players just need a place to park billions for 90 days. That demand can drive yields down temporarily.
Basically, the 3-month bill is the "goldilocks" of the Treasury world. It’s long enough to give you a better return than a standard savings account, but short enough that you don't get wrecked if the Fed suddenly decides to hike rates again (unlikely, but hey, it's 2026).
What Most People Get Wrong About Yields
There is a huge misconception that "yield is yield."
If you look at the 3 month t bill rate today, you might see two different numbers: the Discount Rate and the Investment Basis (Coupon Equivalent). This trips up even savvy investors.
T-bills don't pay "interest" in the way a bond does. You buy them at a discount—say, $99.10—and the government pays you $100 in three months. That $0.90 profit is your "interest."
The discount rate calculates your return based on the face value ($100).
The investment basis calculates it based on what you actually paid ($99.10).
Because you paid less than $100, your actual return (the investment basis) is always slightly higher. That’s why you’ll see some sites reporting 3.57% and others reporting 3.67%. If you’re comparing a T-bill to a Certificate of Deposit (CD) or a High-Yield Savings Account (HYSA), always look at the investment basis. That’s the "apples to apples" number.
The Tax "Cheat Code"
This is the part nobody talks about enough.
T-bills are exempt from state and local taxes. If you live in a high-tax state like California or New York, a 3.67% T-bill might actually be worth more than a 4.10% CD after taxes.
Kinda changes the math, doesn’t it?
3 month t bill rate today vs. The Rest of the Curve
We are currently seeing a "steepening" of the yield curve, which is fancy talk for "long-term rates are going up while short-term rates stay put or go down."
Currently, the 1-month bill is hovering around 3.72%.
The 3-month is at 3.67%.
The 1-year is down at 3.38%.
This is called an inverted yield curve (or at least a very flat one). It usually happens when the market thinks the Fed is going to keep cutting rates over the next year. Investors are willing to take a lower rate on a 1-year bill because they’re afraid if they wait, the rates will be even lower in six months.
By staying in the 3-month bill, you're betting that you can reinvest that money in 90 days at a decent rate, or you simply want the flexibility to move into stocks or real estate if the market shifts.
Is It Still Worth Buying?
Honestly, it depends on what you're doing with the money.
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If this is your "emergency fund," then yes, the 3 month t bill rate today is quite attractive. You're getting nearly 3.7% on a risk-free asset. Compare that to the "big banks" like Chase or Wells Fargo, where you’re lucky to get 0.01% on a standard savings account. It’s a no-brainer.
However, if you're looking for long-term growth, you're technically losing "real" value if inflation stays sticky.
The Real Return Math
If the yield is 3.67% and inflation is running at 2.8%, your "real" return is only 0.87%. That’s not exactly going to buy you a yacht. But in a volatile market, a guaranteed 0.87% real return is better than a 20% loss in a tech-heavy index.
Actionable Strategy for This Month
If you're looking to put money to work right now, don't just dump it all in today.
- Laddering: Instead of putting $30,000 into a 3-month bill today, put $10,000 in today, $10,000 next month, and $10,000 the month after. This way, you have money maturing every 30 days. If the 3 month t bill rate today spikes in February, you’ll have cash ready to catch the higher rate.
- TreasuryDirect vs. Brokerage: Buying through a broker (like Fidelity or Schwab) is usually easier because you can sell the bill on the "secondary market" if you need the cash early. If you buy through the government’s TreasuryDirect site, you’re kinda stuck until it matures.
- Watch the Fed Meetings: The next few months are critical. If the Fed pauses their rate cuts, the 3-month yield will likely climb back toward 4%. If they get aggressive with cuts, expect this rate to slide toward 3% fast.
The 3 month t bill rate today is a safe harbor. It’s not exciting, and it won't make you rich overnight. But in a world where "risk-free" is a rare commodity, getting paid nearly 4% to wait for a better opportunity is a solid move.
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What to do next
If you have cash sitting in a checking account, your first move should be checking your local tax rate. Calculate the "Tax-Equivalent Yield" to see if a T-bill beats your high-yield savings account. Most of the time, for anyone in a mid-to-high tax bracket, the T-bill wins. From there, check the upcoming auction schedule on TreasuryDirect; there is usually a 13-week bill auction every Monday.