3-MO T Bill

In my finance course there is a game/contest thing we're doing. One of the "parts" of it is to guess what the 3-MO T Bill Yield will be at the end of November.

I don't really know a lot about treasuries. What factors are important to take into account?

Thanks for the help in advance.

2 Comments
 

I'm not too much an expert, but I would expect it to decrease. The fed is going to unequivocally reduce the fed funds rate by then and yields should drop. Also, if the credit problem will get worse there will be more flight to quality (even though much of it happened already), so yields would go down in this respect too.

 

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