Sign up  |  Log in

Treasury yields 1 month annualized?

The 1 month treasuries are currently quoted with a yield of 2.2%. Could someone explain this number to me again.

1) Does this mean that if I buy a 1 month yield in January and hold that to maturity, that is until Feb 1st, do I make 2.2%?

2) Or does this mean, in order to make 2.2% I need to buy another 1 month Treasury in Feb, and another in March and so on and on until Dec 31st, in order to make 2.2% by the end of the year?

So is the quoted yield annualized is what I am asking I guess.

The best just got better. Schweser's upgraded content and redesigned study platform are exactly what you need to pass the Level I exam. Save 10% when you preorder a Premium Package for a limited time.

Interest rates are always – always! – quoted as annual rates.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams

Thanks Bill!! I just remembered you had pointed that out to me before (see link above). Thanks for all the help over the years, just passed L3 recently and I definitely owe you a beer or two (or a lifetime supply)!!!