The Rating Watch Negative is resolved with the investment of the reserves in U.S. Treasury Bills
. Fitch has received and reviewed Trustee statements confirming that the investments are consistent with the terms of the indenture and the 'AAA' rating.
Since, as shown in Duffee (1996), one-month Treasury bill yields are assumed to be affected by idiosyncratic variation, we use samples of daily, weekly and monthly observations of the three-month U.S. Treasury bill
yield from January 4, 1954 through March 2, 2006 which are provided by the Federal Reserve.
Such a market would be competitive with the U.S. treasury bill
As a major holder of U.S. Treasury bills
and one of the United States' largest creditors, the kingdom wields a potent political weapon.
For example, when analyzed on an asset-weighted basis, as Simon Lack has documented, if all the money that has ever been invested in hedge funds had been invested in U.S. Treasury bills
instead, the overall results would have been twice as good.
[I]mmediately [the elderly will] be given an account in their name that's full of U.S. Treasury bills
[T-bills] and bonds, whose worth equals the present value of what they'd otherwise receive in Social Security checks for the likely balance of their lives.
U.S. Treasury bills
are considered a nearly risk-free investment.
Any foreign investor and nation buying U.S. Treasury bills
will recognize a bad deal when they see it; my wife sees it, and my students see it.
And then I hope the House Republicans consider what they just went through for no political gain--other than fundraising, which is certainly something--and think back long enough to remember the S&P downgrade of U.S. Treasury bills
in 2011 and last year's "fiscal cliff." And I hope they decide not to repeat the same mistake when it comes time to raise the debt ceiling in a few days.
Average Annual Returns (3) Inflation 3.0% (1) U.S. Treasury Bills
(30 days) 3.7% (1) U.S.
The European Central Bank's ample funding operations removed fears of an imminent credit crunch in Europe and reduced the safe-haven demand for U.S. Treasury bills
, which for the first time in seven weeks were sold at an interest rate above zero on Wednesday.
The Federal Reserve Bank loaned funds to major Wall Street banks at rates of between 0.10 percent and 0.25 percent and at the same time banks were encouraged to purchase U.S. Treasury bills
. Two-year Treasury bills the federal government was selling were fetching more than one percent interest.