/biz/ - Business & Finance

>>54086100
Treasuries are auctioned. They don't pay interest themselves but you buy them below the face value and turn them in at the end for the full face value

So you can imagine you bid $19 for a $20 dollar t-bill you can exercise in a year and your yield is now 5%.. but if suddenly there are other options to get 10% yield no one's is going to pay you $19 for it, they wanna pay $18...so they can cash it in at $20 at the end .. which is how we get to the current issue