Personal Finance and Investing

What is better?

Paying $4.40 a year in interest or $28.80 a year for the same amount?

The $4.40 is what the annual yield is currently on the 90 day T-Bill. Rolled out 3 more times, that is.

The 30 year Treasury Bond currently has a 2.88% coupon.

As long as the auctions on the short maturities are nearly or fully subscribed, it makes perfect sense to use them while yields are so low. Those yields BTW are set at the auctions, so the Principal Dealers have a lot of say as to what they are. If those dealers feel they can not sell bills at such low rates, they'll bid them higher.


Edit: FWIW, I understand the point being made in the article you linked and it is perfectly valid. That concerns is even greater with the unpredictability of a Trump in the White House. If he scares the international bond market, the scenario discussed in the article could certainly occur.