Nov 30 Issue T-Bills: 4 Week Yield (5.39%) Leads the Pack

I jumped back on the bandwagon and made my latest T-Bill purchase two weeks ago. As CD rates continue to drop, T-Bills are still an attractive place to stash short term cash.

For November 30 issue T-Bills, the inverted yield curve continues as 4 week T-Bills (5.39%) topped both 3 month (5.13%) and 6 month bills (5.20%).

Using the new and improved handy T-bill tax equivalent yield spreadsheet developed by contributors to the FatWallet discussion on Treasury Bills, let's compare yields of 4 week T-Bills for states with various income tax rates: high (CA 9.3%), medium (MA 5.3%), and none (TX 0%):

APY Type	CA (9.3%)	MA (5.3%)	TX (0%)
Unadjusted	5.393%	5.393%	5.393%
Non-Itemizers@15%	6.055%	5.751%	5.393%
Non-Itemizers@25%	6.156%	5.803%	5.393%
Non-Itemizers@28%	6.193%	5.821%	5.393%
Non-Itemizers@33%	6.262%	5.856%	5.393%
Non-Itemizers@35%	6.293%	5.856%	5.393%
Itemizers	5.946%	5.695%	5.393%

This data shows that 4 week T-Bills are an excellent place to park short term cash even for residents of states with moderate income taxes. As long as the current T-Bill rate trend continues, I will be putting the proceeds from some savings bonds and maturing T-Bills into a 4 week T-Bill in mid December.