What the 3-month Treasury bill rate measures
A Treasury bill is short-term US government debt sold at a discount and repaid at face value. The 3-month bill rate on this chart is the constant-maturity yield for a 13-week bill, published by the Federal Reserve and averaged by month. It is about as close to a risk-free return on cash as exists in US markets.
How to read this chart
Because a 3-month bill matures before most Fed meetings have played out, its line hugs the federal funds rate, often moving a few weeks early when a rate change is expected. Stretches near zero mark the years when the Fed held rates at the floor. When the 3-month rate rises above the 10-year yield, the curve is deeply inverted – another recession signal some economists prefer to the 10-year minus 2-year spread.
The latest reading in context
- At 4.23%, the latest reading is above its 5-year average of 3.99% and above its 10-year average of 2.55%.
- Of all 542 monthly readings since September 1981, 52% were lower than today’s and 48% were higher.
- Direction: up 0.14 points over the past month; up 0.53 points over the past six months; up 0.25 points over the past year.
- The highest value on record is 15.61% (September 1981, 45 years ago); the lowest is 0.01% (September 2011, 15 years ago).
- The full history spans 5 US recessions, shaded grey on the chart.
Why it matters
Money market funds, Treasury-bill ETFs and bank sweep accounts invest heavily in bills, so their yields follow this rate closely. It is also the “cash” benchmark against which stock and bond returns are measured, and the rate used in many finance formulas for the risk-free return.
What moves the 3-month Treasury bill rate
- The current and expected federal funds rate
- The supply of bills the Treasury sells, which jumps after debt-ceiling deals
- Demand for safe, liquid assets in times of stress
Key moments in its history
- 1981Above 15%: cash paid double-digit returns.
- 2009–2015Close to zero for seven years.
- 2020–2021Back near zero during the pandemic.
- 2023Above 5%, the best cash yields in more than 15 years.
3-Month Treasury Bill Rate data tables
Average by decade
| Decade | Average | High | Low |
|---|---|---|---|
| 2020s (so far) | 2.98% | 5.60% | 0.02% |
| 2010s | 0.58% | 2.45% | 0.01% |
| 2000s | 2.76% | 6.36% | 0.03% |
| 1990s | 4.99% | 8.17% | 2.93% |
| 1980s | 8.33% | 15.61% | 5.32% |
Last 12 months
| Period | Value | Change |
|---|---|---|
| Oct 2026 | 4.23% | +0.14 pts |
| Sep 2026 | 4.09% | +0.21 pts |
| Aug 2026 | 3.88% | +0.01 pts |
| Jul 2026 | 3.87% | +0.06 pts |
| Jun 2026 | 3.81% | +0.12 pts |
| May 2026 | 3.69% | −0.01 pts |
| Apr 2026 | 3.70% | −0.02 pts |
| Mar 2026 | 3.72% | +0.03 pts |
| Feb 2026 | 3.69% | +0.02 pts |
| Jan 2026 | 3.67% | −0.01 pts |
| Dec 2025 | 3.68% | −0.26 pts |
| Nov 2025 | 3.94% | −0.04 pts |
Monthly values. Decade figures are averages of the monthly values in each decade. The complete history is available as a CSV file.
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3-Month Treasury Bill Rate: questions and answers
How do Treasury bills pay interest?
They don’t pay coupons. You buy a bill below its face value, for example $9,880 for a $10,000 bill, and receive the full face value at maturity; the difference is your interest.
Are T-bill rates the same as money market yields?
Close but not identical. Government money market funds hold mostly T-bills and repurchase agreements, so their yields usually sit slightly below the 3-month bill rate after fees.
Is the interest on T-bills taxable?
It is subject to federal income tax but exempt from state and local income taxes, which makes bills attractive in high-tax states. This is general information, not tax advice.
Where does the data on this chart come from?
From the Board of Governors of the Federal Reserve System. ChartWidgets downloads the series (DGS3MO) from FRED, the Federal Reserve Bank of St. Louis database, and checks for new releases every day. The last update was on November 1, 2026.